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IC 8877 



Bureau of Mines Information Circular/1982 



SIC-Based Demand Information 
System for Nonfuel Minerals 



By George K. Schenck, Balakrishnan K. Nair, 
and Kung-Lee Wang 



UNITED STATES DEPARTMENT OF THE INTERIOR 



Information Circular 8877 



SIC-Based Demand Information 
System for Nonfuel Minerals 



By George K. Schenck, Balakrishnan K. Nair, 
and Kung-Lee Wang 




UNITED STATES DEPARTMENT OF THE INTERIOR 
James G. Watt, Secretary 

BUREAU OF MINES 
Robert C. Horton, Director 



V 



<o 






As the Nation's principal conservation agency, the Department of the Interior 
has responsibility for most of our nationally owned public lands and natural 
resources. This includes fostering the wisest use of our land and water re- 
sources, protecting our fish and wildlife, preserving the environmental and 
cultural values of our national parks and historical places, and providing for 
the enjoyment of life through outdoor recreation. The Department assesses 
our energy and mineral resources and works to assure that their development is 
in the best interests of all our people. The Department also has a major re- 
sponsibility for American Indian reservation communities and for people who 
live in Island Territories under U.S. administration. 




This publication has been cataloged as follows: 



Schenck, George K 

SIC-based demand information system for nonfuel minerals. 

( Information Circular ; 8877) 

Bibliography: p. 42*44. 

Supt. of Docs, no.: I 28.27:8877. 

L Mineral industries— Data processing. 2. Mines and mineral 
resources— Data processing. I. Nair, Balakrishnan K. II. Title^ III. 
Series: Information circular (United States. Bureau of Mines) ; 8877. 



TTC295.U4lHD9506.A2] 622s [025'.06553] 81-607810 AACR2 



For sale by the Superintendent of Documents. U.S. Government Printing Office. Washington, D.C. 20402 



PREFACE 

> 

This report was prepared by The Pennsylvania State University, 
Department of Mineral Economics, University Park, Pa., under USBM grant 
number G0166213. The grant was initiated under the Research and Devel- 
opment Program. It was administered under the technical direction of 
the Bureau's Economic Analysis Branch with K. L. Wang acting as Techni- 
cal Project Officer. Joseph Pettus was the grant administrator for the 
Bureau of Mines. This report is a summary of the work, completed as a 
part of this grant during the period February 1 to June 30, 1979. This 
report was submitted by the authors on June 30, 1979. 

The research leading to the new data system was initiated by 
Dr. John Morgan, Chief Staff Officer and former Associate Director — 
Minerals and Metals Supply/Demand Analysis of the Bureau of Mines. 
Paul Meadow, former Director, Division of Analytic Studies, actively 
encouraged the work and made available the resources of his division. 
The valued cooperation of the commodity specialists for the minerals 
studied and the staff of the Division of Production/ Consumption Data 
Collection and Interpretation was most essential to the project. Carl 
H. Cotterill, Director, Division of Field Operation and former Assistant 
Director — Metals, Minerals and Materials, strongly supported the imple- 
mentation of this research and encouraged the Bureau's commodity spe- 
cialists on his staff to cooperate fully on this project. Dr. William 
A. Vogely, Head of Pennsylvania State University's Department of Mineral 
Economics, provided important advice and guidance, and Frederick Demler, 
Thomas Majcher, William Nagle, and Robert Whelan conducted case studies. 
Encouragement and active help were provided by many people in the indus- 
try. Although space does not permit acknowledging each participant by 
name, the authors wish to thank all representatives of the firms and 
trade associations listed in appendix A for their assistance. Appen- 
dix B provides a list of the commodities studied and a guide to the 
project report in which the end-use survey for each commodity is dis- 
cussed in detail. 



CONTENTS 



Page 



Preface i 

Abstract 1 

Introduction 2 

The new data system 3 

The need for the new data system 3 

Usefulness of the new data system 4 

Elements of the end-use data system 5 

The technical product class dimension 5 

Criteria for selection of technical product classes 8 

Additional criteria for classifying technical product classes 10 

End uses — Description of the dimension 13 

Distinction between commercial uses and intermediate product markets 13 

Perspectives on the market versus product definition 14 

Appropriateness of SIC to define end uses 16 

Service sectors excluded 18 

Two- and three-digit SIC classes preferred 18 

Survey forms and methods 19 

Design of the survey form 19 

Separation of other uses to prevent overaggregation 24 

A modified survey form 26 

Lead: An example of a new SIC-based survey form 28 

A statistical sampling alternative 31 

Integrating data from other sources into the SIC-based information system. 31 

Implementation of the data system 37 

Bibliography 42 

Appendix A. — Some of the firms and trade associations consulted in this study.. 45 

Appendix B . — References to commodity studies 48 

ILLUSTRATIONS 

1 . Linkage in the supply and demand for minerals 3 

2 . Schematic diagram of fluorine compounds 8 

3 . Fluorine compounds consumed in glass and ceramics 9 

TABLES 

1. Comparison of Bureau of Mines intermediate product classes for cobalt with 

proposed technical product classes 12 

2. TPC's common for ferroalloy group of minerals 13 

3. End-use applications of fluorine compounds 15 

4. Proposed canvass survey form for zinc compounds 21 

5. End uses of zinc compounds 22 

6. Questionnaire showing shipments of hot-dip galvanized steel by end-use 

industries 23 

7. High-temperature alloys, end-use survey form 27 

8 . Revised lead survey form 29 

9. Old lead survey form 30 

10. CDA market classification, an example using CDA end-use 310 Automotive, 

Nonelectric 33 

11. Recommended translator for converting CDA data into SIC data base 36 

12. TPC end-use matrix for information-critical minerals 39 



SIC-BASED DEMAND INFORMATION SYSTEM FOR NONFUEL MINERALS 

By George K. Schenck, 2 Balakrishnan K. Nair, 3 and Kung-Lee Wang 4 



ABSTRACT 

This Bureau of Mines publication describes and evaluates a Standard 
Industrial Classification (SIC) based end-use data system for minerals 
that is designed to link the demand for minerals to economic activity in 
commercial uses. 

The new data system is two-dimensional. The first dimension of 
technical product classes (TPC's) measures the consumption of minerals 
in major primary intermediate products. The second dimension measures 
the consumption of these TPC's in SIC end-use sectors in sufficient 
detail to identify the major determinants of demand for each TPC. 
Intercommodity comparisons are achieved at the level of SIC two-digit 
major groups. The methodology was developed so that all available 
sources of information from Government and industry can be utilized at 
minimum cost. This information will be supplemented with additional 
data to be obtained by modifying existing Bureau of Mines canvasses so 
as to elicit additional quantitative responses from mineral producers. 

The new data system is expected to improve significantly the abil- 
ity to forecast demand for minerals, and provide an information base 
that would, for the first time ever, permit resolution of such questions 
as trends in substitution among materials and the intensity-of-use of 
materials in end-use sectors. For the 42 TPC's identified in the 
report, data are available for the new system from current sources or, 
except for three TPC's that require new canvasses, can be obtained by 
modification of existing Bureau canvasses. 



'The term "mineral" is used in this report in its broad, generic sense which encom- 
passes such diverse mineral-based materials as elements, metals alloys, compounds, 
and commodities. 

2 Associate professor, Department of Mineral Economics, Pennsylvania State University, 
University Park, Pa. 

^Research associate, Department of Mineral Economics, Pennsylvania State University, 
University Park, Pa. 

4 Chief, Quantitative Economics, Division of Analytic Studies, Bureau of Mines, 
Washington, D.C. 



INTRODUCTION 



The SIC categorizes establishments 
by their major economic activities, qual- 
ified somewhat by product specialization. 
The choice of SIC to define end-use sec- 
tors in the Bureau of Mines mineral data 
system satisfies the primary objective of 
the data system; namely, to link, the 
demand for minerals to (1) economic 
activity and (2) other Government data 
sources. 

Public policy is now hampered by a 
lack of reliable information regarding 
the role of minerals in the economy, par- 
ticularly their effect in specific end- 
use markets. How far is the economy 
dependent on the availability of miner- 
als; what sectors of the economy are rel- 
atively more vulnerable to mineral short- 
ages than other sectors; which of the 
minerals are more critical? These are 
all questions relevant to current public 
policy as it is addressed to the adequacy 
of materials for sustained economic 
growth. The new data base discussed in 
this report is meant to correct the void 
that now exists in the information needed 
for establishing policy to resolve the 
above issues. 

Information is not static. Public 
policy not only demands information but 
also creates the demand for additional 
information. This changing need for 
information for minerals is reflected in 
the Mineral Availability System (MAS) 
earlier introduced by the Bureau of Mines 
as the Bureau sought to improve its 
information capability regarding domestic 
resources. This Information Circular 
introduces a similar effort by the Bureau 
to improve information regarding demand 
for minerals. The SIC-based information 
system being implemented by the Bureau 
will enhance understanding of the role of 
minerals in the economy and improve the 
forcasting of the demand for minerals. 

Evolving concerns about the preser- 
vation of environmental quality have 
raised questions not only about domestic 
mineral supplies, but also about the 



appropriate levels of use of minerals. 
Also the threat of nonprice restrictions 
such as mineral cartels that interfere 
with free trade in minerals may pose a 
threat to the economic welfare and 
national security of the United States. 
In order to understand and evaluate these 
issues, the data base regarding consump- 
tion of minerals in their numerous end 
uses should be significantly improved. 

There is a need to know about mate- 
rial substitution in mineral-consuming 
industries. There is also a need to 
enhance our understanding about the 
intensity-of-use of materials in various 
sectors of the economy. Finally, there 
is an urgent need to improve the quanti- 
tative base to improve forecasting of the 
demand for minerals, so that the Govern- 
ment and industry can anticipate and pro- 
vide for polices and programs to insure 
that such demand is appropriately 
satisfied. 

The feasibility of the two- 
dimensional information system presented 
here and jointly developed by Penn State 
and the Bureau was first rigorously 
tested for one commodity, namely sulfur. 
The test was a success. Then, under re- 
search contracts from the Bureau, and 
with the active cooperation of Bureau 
personnel, Penn State expanded the case 
studies to include all information- 
critical minerals. These are defined to 
be those minerals for which end-use data 
are relatively vital, either because 
of dependence on foreign sources of 
supply or because the existing data base 
may be inadequate for resource policy 
decisions. 

The Bureau is at present actively 
instituting the new end-use information 
system for nonfuel minerals. This new 
data system, when fully in place, is 
expected significantly to improve both 
understanding of the sectoral demand for 
minerals and forecasting of the demand 
for minerals. 



THE NEW DATA SYSTEM 



The new end-use data system is based 
on a two-dimensional approach using both 
technical product classes and end-use 
sectors. The new, two-dimensional system 
is consistent with the derived nature of 
the demand for minerals. The first 
dimension consists of a series of primary 
intermediate products of minerals that 
are designated as Technical Product 
Classes (TPC's). The second dimension 
consists of an extensive set of end uses 
defined by criteria established in the 
well-known Standard Industrial Classifi- 
cation (SIC) system of the Federal 
Government. 

The end-use dimension is itself more 
accurately characterized as "commercial 
uses," as distinct from final consumption 
in the economy. In other words, the new 
data system measures the consumption of 
TPC's in such commercial uses as agricul- 
ture, construction, and manufacturing, 
but ignores service sectors. 

The Standard Industrial Classifi- 
cation categorized establishments by 
their major economic activities, quali- 
fied somewhat by product specialization. 
The choice of SIC to define end-use sec- 
tors satisfies the primary objective of 
the data system; namely, to link, the 
demand for minerals to economic activity 
and to other Government data sources. 5 

The Need for the New Data System 

Primary minerals rarely find direct 
application in final consumption sectors, 
except in the case of industrial miner- 
als. More often, minerals are used in 
the manufacture of intermediate products, 
the demand for which is derived from end- 
use markets. The demand for ferroalloy 
minerals, for example, is determined by 
the demands for steel, high-temperature 
alloys, and so on in end-use markets such 
as transportation. 



5 Choice of SIC is justified in a later 
section entitled "Appropriateness of 
SIC To Define End Uses." 



Figure la shows schematically the 
linkage in the supply and demand for min- 
erals. Figures lb and lc illustrate how 
the demand for goods in the end-use mar- 
ket influences the price and output of 
intermediate products. A shift in the 
demand for automobiles from Q z to Q^ 
(fig. lc) calls forth an increase in the 
supply of steel from Q x to Q x (fig. lb). 
This, in turn, increases the quantities 
of iron ore and other ferroalloys 
demanded in the production of steel (from 
Q M to Qj,, not shown in fig. 1). 

The above example illustrates that 
the market for primary minerals is the 
intermediate product market and not final 
consumption sectors. Firms in the 
mineral-producing industries perceive the 
demand response in the intermediate prod- 
uct markets and not demand in final con- 
sumption sectors. 

The derived nature of the demand 
for minerals requires a two-dimensional 
information system. In terms of an 




PRIMARY 

MINERALS 

M 



INTERMEDIATE 

PRODUCTS 

X 



MINERAL 

END-USE 

MARKETS 

Z 






/Sx 




v s / / s 'x 

\\ //■■■ 


kJ 


\ V ; 


o 
£E p x 


\ X / 


~ -¥ fc 




p v 


A/'\ 




/'A' v . 




1 k Nd x 

i 1 A 



Q x Q' x 

QUANTITY 
(b) 
INTERMEDIATE PRODUCTS^ 




QUANTITY 
(c) 
END-USE MARKETS =Z 



FIGURE 1. - Linkage in the supply and demand 
for minerals. 



end-use data scheme for minerals, this 
means that the information should sepa- 
rate (1) the consumption of minerals in 
the production of intermediate products 
and (2) the consumption of these inter- 
mediate products in their end-use mar- 
kets. Practical considerations in gener- 
ating data, as well as cost effectiveness 
of the program, also justify this two- 
dimensional approach. 

Usefulness of the New Data System 

Effective management and rational 
policymaking require sufficient, reliable 
data. In the minerals sector, both the 
formulation of policy and the management 
of specific programs are to some degree 
hampered by insufficiently detailed data 
about the demand for minerals in end-use 
markets. 

By explicitly linking the demand for 
minerals with economic sectors defined by 
SIC, policymakers and managers in various 
industries will then be in a position to 
interrelate the sensitivity of material 
demand with economic activity. The 
wealth of census and other information 
about economic activity can then be used 
more effectively in forecasting mineral 
demand. 

In the few instances (for example, 
steel, aluminum, brass) where end-use 
data are now available, the usefulness of 
such data is limited because the "end- 
uses" classifications differ among them 
and often differ widely from those end- 
use sectors for which economic forecasts 
are available. The new data system alle- 
viates this difficulty by providing a 
common classification system, and does so 
without sacrificing the wealth of avail- 
able information. Translators^ are used 
now to convert existing data into the 

"These are tables in which non-SIC market 
classifications are correlated with 
the coincident SIC end uses. 



data system. This insures better infor- 
mation without abridging the traditional 
role of trade associations and other 
agencies and provides these data at mini- 
mum additional cost and without breaching 
confidentiality. 

By defining technical product class- 
es that are common for various minerals 
and thus, wherever possible, standardiz- 
ing information for different minerals, 
it will be possible to enhance intercom- 
modity comparisons. 

The new data system also recognizes 
that the information required for policy 
planning, for example, may differ in 
details from that required to forecast 
the demand for an individual mineral. An 
accommodation of these different levels 
of information is made possible by making 
effective use of the SIC two-digit, 
three-digit, and four-digit classifica- 
tions. This hierarchical feature further 
enhances the usefulness of the informa- 
tion to various users. 

Every effort has been made to pre- 
sent end-use data in a manner useful to 
industry in its market planning. In the 
new data system, this is achieved in sev- 
eral ways. First, where possible, exist- 
ing trade association data systems are 
used as sources of input data in their 
entirety. This enhances the traditional 
value of such data by integrating them 
with the new SIC-based system. Second, 
many industry professionals were con- 
sulted in determining the scope of each 
TPC and of the end-use classes (appen- 
dix A). This consultation provided both 
quality control and understanding of the 
needs of private users of the new data. 
The new SIC-based system provides a basis 
for individual segments of the mineral 
industry to enhance their understanding 
as to how other materials compete or 
interact with their products in numerous 
markets. 



ELEMENTS OF THE END-USE DATA SYSTEM 



The new end-use data system seeks to 
link the demand for minerals to economic 
activity. This linkage is achieved by 
means of a two-dimensional data system of 
TPC's and SIC's. 

The first dimension defines the 
demand for minerals in the production of 
technical product classes (TPC's) such as 
carbon steel. The second dimension mea- 
sures the consumption of these TPC's in 
SIC end-use sectors such as motor vehi- 
cles. SIC end-use sectors are so defined 
that intercommodity comparisons are pos- 
sible at SIC two-digit levels, while 
simultaneously insuring a detailed clas- 
sification that more accurately captures 
the demand for each TPC. 

The Technical Product Class Dimension 

Technical product classes (TPC's) 
are those groups of major intermediate 
products of a mineral for which separate 
end-use data are desirable, either 
because the particular TPC enhances 
understanding of the backward linkage to 
the demand for a primary mineral such as 
sulfur or because the TPC materially 
enhances the quality of end-use data by 
providing a category that is well under- 
stood by industry personnel. 

Symbolic Definition of Technical 
Product Classes 7 

A mineral, M, may go either into the 
production of intermediate products, Xj, 
or directly into end uses, Z-. 



M = f(Xj, Z } ) 

i = 1, . . . ,n; j = 1, . . . ,m 



(1) 



'This section is important for persons 
who will be working with the canvass 
forms or who wish to understand the 
logic of incorporating TPC's into the 
new data system. Others may skip this 
section. 



Intermediate products, X:, may be used to 
manufacture other intermediate products, 
Y | , or may be used in end uses , Z , . 



f(Z:, Y:) 



1, 



(2) 



If Xj's are considered as primary inter- 
mediate products, Y|'s may be regarded as 
secondary or tertiary intermediate prod- 
ucts. An example of the primary inter- 
mediate product, X-, is sulfuric acid, 
which is made from elemental sulfur or is 
recovered from other sulfur sources such 
as smelter gases. Sulfuric acid may then 
be consumed in fertilizers, Zj, or may be 
used to manufacture a secondary inter- 
mediate product, such as aluminum sul- 
fate, Y|. Aluminum sulfate, in its turn, 
may be used in an end-use market, Z-, 
such as paper, or may be used to produce 
tertiary intermediate products such as 
sodium aluminum sulfate (alum) and so on. 
Yj's are, therefore, both secondary and 
tertiary intermediate products such as 
aluminum sulfate and alum. 

Y,'s themselves go into commercial 
use, Z|. 



Y ; = f(Z ; ) 



(3) 



Demand for a primary mineral, M, in end- 
use markets, Z., then is 



M = f <xj M Z:»ykXj Z,) 



(4) 



where ; M 7 is the ith primary inter- 
mediate product of M that goes into end- 
use market Z-, and k X , z is the kth 
intermediate product of X , that goes into 
consumption in Z - t . Ideally, then, to 
understand the flow of minerals to end- 
use sectors, it is necessary not only to 
know the direct consumption of, say, sul- 
furic acid in water purification, but 
also to know the sequential data on the 
indirect consumption of sulfuric acid in 
the same end-use sector, via aluminum 
sulfate and alum. 



This is not practical to achieve 
when the steps necessary to obtain the 
data are considered. The sequential data 
gathering would require three separate 
canvasses: one canvass for the consump- 
tion of sulfuric acid in its end uses 
such as water purification and its inter- 
mediate products such as aluminum sul- 
fate; a second canvass to repeat the same 
information for aluminum sulfate; and a 
third canvass for alum. A firm that pro- 
duces all three products would be the 
recipient of three survey forms , an 
accumulation that might end its coopera- 
tion as a respondent. Furthermore, at 
each successive stage in the canvass, 
more and more firms have to be canvassed 
to complete the data. The immensity of 
such a sequential information gathering 
system and the costs associated with it 
can be estimated when the vast array of 
intermediate products made from sulfuric 
acid is recalled. 



water purification, including sulfuric 
acid used to manufacture water purifica- 
tion chemicals, aluminum sulfate, or 
alum. 

In equation 5, Xj's are Technical 
Product Classes for a mineral, M. Z , is 
a vector of end-use markets defined on 
the basis of Standard Industrial Classi- 
fication. However, this is not such a 
a serious restriction as it first ap- 
pears. The scheme of technical product 
classes is conceptually similar to defin- 
ing a set of demand equations for a 
mineral. 

In the case of sulfur, the demand 
for sulfur can be defined in terms of the 
demand for elemental sulfur and the 
demand for sulfuric acid. Thus, ele- 
mental sulfur and sulfuric acid are two 
TPC's (X) in equation 5 for sulfur. 
Demand for sulfur, D s , then is 



The organization of the chemical 
industry is such that a major firm's 
product line is seldom confined, as in 
the above case, to a simple product like 
sulfuric acid or its derivatives. The 
same firm may produce chemicals based on 
such materials as fluorine, chromium, and 
cobalt. For each firm in the industry, 
the cost of detailed data for a sequen- 
tial information system is obvious. 

Therefore, despite its attraction, a 
sequential information system to satisfy 
equation 4 is predestined to fail. At 
one stage or another, this sequential 
information gathering will have to be 
discontinued. The most, practical step is 
to ignore the secondary and tertiary 
intermediate products, Y|'s, and confine 
the data base to the primary intermediate 
products, X's, of a mineral. Equation A 
is then modified to 



M- f( XJ M z ) 



(5) 



This does not necessarily ignore the con- 
sumption of Y | in Z | . Producers of X: 
are asked to estimate consumption of X ■ , 
including X- contained in Y,. In the 
example of sulfuric acid, a producer of 
sulfuric acid is asked to report all 
shipments of sulfuric acid for use in 



D S " f < D S1> D S2) 
D S1 = g(Z ,) i = 1, ... ,n 



D S2 = g'(Z,) i = 1, 



(6) 
(7) 
(8) 



In general, the demand for a mineral, M, 
in end-use sectors is given by a system 
of equations for technical product 
classes , Xj's. 



M = f(X,, X 2 ,...X m ) 



Xj = g(Z 



1 > Z 2> 



•z n ) 



(9) 
(10) 



The formulation in equations 9 and 
10 requires m canvasses to collect end- 
use data on these TPC's, and the solution 
sould involve a system of m+1 equations. 
Equation 10 does not show the direct con- 
sumption of M in final consumption sec- 
tor Z|. This is because, when relevant, 
the mineral itself is considered as one 
of the technical product classes for 
which end-use data are generated. For 
example, equation 5 is defined to include 
elemental sulfur, as well as sulfuric 
acid. 

One intrinsic advantage of this 
formulation is that the data base is fur- 
ther simplified because there are X-'s 



that might be common for several miner- 
als, which further minimizes additional 
canvasses. For example, consider steel, 
a TPC , which is common for all ferroalloy 
minerals. The advantage is in the sim- 
plicity of the concept, and the cost 
effectiveness of gathering information. 
One set of information — namely, the end 
uses of steel — gives end-use information 
for several minerals such as manganese, 
chromium, and vanadium. 



high-speed tool steel in larger propor- 
tion than other tool steels one would be 
underestimating the demand for cobalt in 
the aircraft sector if the demand for 
cobalt in aircraft was estimated as 
a, # Z k . Such an error traces to the use 
of the more general average coefficient 
instead of a more precise coefficient 
that is correctly weighted to reflect 
only the types of tool steel delivered to 
the aircraft industry. 



X, = g(Z.) 



(11) 



where X 1 is steel. Then, for each min- 
eral contained in steel, M. 



M, = f(a,Z,) 



(12) 



X 



where a t = — -*-. the contained mineral in 

1 M j ' 

a unit of X,. Equation 12 assumes a 
direct proportional relationship between 
M contained in X, and M ; consumed in Z . . 
This will be true only if X 1 is a homo- 
geneous product. If X, is not a homo- 
geneous product but a group of related 
products, then the coefficient, a., is an 
average for the group of products as a 
whole, I|, and equation 12 may only 
approximate the consumption of M. in Z . . 

There may be some Zj's in which an 
alloy with a higher unit content of M| 
than the average a- may be selectively 
demanded or vice versa. Therefore, 
although the average coefficient, a f , may 
be a good estimate of M f in the produc- 
tion of X|, it may not be a good estimate 
for purposes of equation 12, which is the 
objective of the end-use data collection 
system. 

For example, say cobalt is the i +h 
mineral with X, being tool steel. The 
average coefficient, say, a,, which 
describes the ratio of cobalt contained 
in a unit of tool steel, is lower than 
the average contained cobalt, say, I 2 , in 
high-speed tool steel. However, the can- 
vass on tool steel provides data only on 
the consumption of tool steel in end-use 
sectors, Zj's. If one end-use sector, 
Z k (say, aircraft) selectively demands 



The problem illustrated in the above 
example can be eliminated only if end 
uses for each separate cobalt-containing 
steel alloy are known. Such detailed 
information is unavailable for a variety 
of reasons. Hence, the best that can be 
expected is to use the methodology where 
TPC's are carefully designed to get the 
average coefficient, a-, as close as pos- 
sible to the actual coefficient, a-, so 
that a | approximates the expected value 
of a | . 

In the illustrative case of cobalt, 
whereas a , if measured as an average 
coefficient for all steel could create a 
serious flaw, a 1 measured as an average 
for tool steel would be close to what can 
reasonably be expected from a commodity 
survey. Although using such average 
coefficients is a theoretical shortcoming 
in the two-dimensional end-use data 
scheme proposed in this study, no means 
were found during this study by which 
this problem could be entirely corrected. 
For example, it can be readily seen that 
high-speed tool steel is not a homo- 
geneous product either, and the argument 
to separate high-speed tool steels from 
tool steel can soon be applied to each of 
the many high-speed tool steels manufac- 
tured, but this leads to an explosion of 
data. 

The questions relevant to such a 
data explosion are can data be generated 
in such great detail, and are the mar- 
ginal benefits so obtained commensurate 
with the cost of generating and process- 
ing such data. The answers to both ques- 
tions are negative. Also, the greater 
the number of TPC's, the more narrowly 



each TPC is defined and the more likely 
that the canvass will ask for information 
considered by firms as proprietary and 
lead to diminished cooperation. 

Criteria for Selection of Technical 
Product Classes 

Technical product classes for a min- 
eral are those primary intermediate prod- 
ucts that adequately capture the demand 
information for minerals in relation to 
end-use markets. A TPC performs a dual 
function in the information system by 
providing a backward linkage to demand 
for primary minerals, while satisfying 
the forward linkage to end-use sectors. 

The selection of a TPC cannot be 
based upon a unique criterion. Rather, 
each TPC should be selected so that it 
represents the minimum number of primary 



intermediate products that together 
provide an information base adequate to 
quantify the flow of minerals in the 
economy. The selection of a TPC for a 
mineral is subjective, and the TPC's for 
a particular mineral are not fixed over 
time. Technical product classes may 
change as technology changes. The cri- 
teria for selection of technical product 
classes are best illustrated with an 
example. The case of fluorine is dis- 
cussed below. 

Figure 2 shows the three TPC's 
selected for fluorine — fluorspar, hydro- 
fluoric acid (HF), and fluorsilicic 
acid — drawn as diamond-shaped boxes. 
Rectangular boxes in figure 2 represent 
all major intermediate products derived 
from hydrofluoric acid or fluosilicic 
acid. Note that these intermediate 
products themselves may go into mineral 




SILICON 

TETRA- _ 
FLUORIDE 
(byproduct) 





(4) 



FLUORIDES 



(5) 



FLUORINE 



(7) 



SODIUM 
FLUORIDE 



A3L 



FLUO- 
SILICATES 



(6) 



FLUORO- 
CARBONS 



(9) 



CRYOLITE 



(10) 



ALUMINUM 
FLUORIDE 



FIGURE 2. - Schematic diagram of fluorine compounds. 



I i 



M 
I 

N 

E 
R 
A 

L 

E 
N 
D 

U 
S 

E 

M 
A 
R 
K 

E 
T 
S 



end-use markets or may go into the pro- 
duction of other intermediate compounds. 
For example, fluorides (manufactured from 
HF) may go into mineral end-use markets 
or may go into the production of other 
intermediate compounds. For example, 
fluorides (manufactured from HF) may go 
into final consumption (for example, 
water fluoridation, glass, and ceramics) 
or may be used as fluorinating agents 
that produce additional intermediate 
products such as organic compounds of 
fluorine (f luorocarbons) . 

The numbered boxes in figure 2 indi- 
cate that in one possible, hypothetical, 
detailed scheme, there are 10 possible 
technical product classes for fluorine 
that would require an equal number of 



questionnaires to elicit data from firms 
in the industry. Since more than 7 5 per- 
cent of hydrofluoric acid is consumed at 
captive plants, it also implies that a 
firm that manufactures HF would be the 
recipient of questionnaires 2, 4, 5, and 
6. Similarly, a producer of byproduct 
fluosilicic acid could receive up to 
five questionnaires (3, 5, 8, 9, and 10). 
This complexity obviously would be unac- 
ceptable to industry. 

One of the end-use markets for flu- 
orine is in glass and ceramics, shown in 
figure 3. This sector uses various 
fluorine compounds for a variety of 
applications, such as providing trans- 
parency (fluorspar, cryolite) , etching 
and polishing (hydrofluoric acid) , 




MAGNESIUM 
FLUORIDE 



AMMONIUM 
BIFLUORIDE 



POTASSIUM 
BIFLUORIDE 



SODIUM 
FLUORIDE 



GLASS 

AND 

CERAMICS 

SECTOR 




ALUMINUM 
FLUORIDE 



SODIUM 

FLUO- 

SILICATE 



FIGURE 3. - Fluorine compounds consumed in glass and ceramics. 




10 



enamels and glazes (lithium fluoride) , 
frosting (potassium bifluoride) , and 
imparting opalescence (sodium fluosili- 
cate) . If the analyst knew only consump- 
tion of all fluorine in glass and ceram- 
ics, it might not be sufficient because 
this demand is satisfied using three dif- 
ferent sources (TPC's) of fluorine units. 
First, there is the consumption of 
fluorspar. Second, there is consumption 
as hydrofluoric acid and its compounds 
produced from acid-grade fluorspar, and 
third, there are products obtained from 
fluosilicic acid, which is a new source 
of supply of fluorine and is a byproduct 
of phosphate processing. There is also 
merit in knowing consumption of hydro- 
fluoric acid and products made from it 
versus consumption of fluosilicic acid 
and its compounds, because such a data 
base would indicate the substitution of 
fluorine compounds from two distinct and 
separate primary sources of fluorine. 



acid. Efficiency and cost dictate that 
the number of TPC's be limited in this 
case to three, the minimum required to 
satisfy the data objective. 

In summary, the approach by the 
Bureau is to collect end-use data for a 
limited number of TPC's for each mineral. 
These TPC's are major intermediate prod- 
ucts or groups of closely related inter- 
mediate products. The objective in 
selecting TPC's for a mineral is to limit 
them to the minimum number required to 
quantify the final consumption character- 
istics of a mineral subject to the avail- 
ability of data. Appendix B provides a 
list of the TPC's studied and a guide to 
the project report in which the sources 
for end-use data for each commodity are 
discussed in detail. 

Additional Criteria for Classifying 
Technical Product Classes 



The classification in figure 3 of 
fluorine into three TPC's (see diamond- 
shaped boxes for fluorspar, hydrofluoric 
acid, and fluosilicic acid) is amply jus- 
tified. But to classify as separate 
TPC's each of the eight compounds out- 
lined in figure 3 as rectangles (cryo- 
lite, sodium fluoride, etc.) would be 
unwarranted because such a data explosion 
would not be justified by a corresponding 
increase in usefulness of the data 
collected. 

What should be expected from an end- 
use data base is a report of the consump- 
tion of fluorine in end uses such as 
"Glass and Ceramics," aggregated in a way 
that would permit estimation of the 
supply requirements of fluorine given a 
forecasted level of activity in the glass 
and ceramics sector. This linkage to 
supply is amply satisfied if data can be 
collected for consumption of ceramic- 
grade fluorspar, acid-grade fluorspar 
(hydrofluoric acid) , and fluosilicic 
acid, the diamond-shaped boxes of fig- 
ure 3. The information base would not be 
strenghthened significantly if the con- 
sumption was determined separately for 
each of the compounds derived from either 
or both hydrofluoric acid and fluosilicic 



An important consideration in defin- 
ing a TPC for a mineral is that it should 
be limited either to one product or to a 
group of closely related products. In 
this manner consumption of mineral in 
that TPC can be determined with a degree 
of confidence. 

For a mineral such as iron ore, one 
TPC, namely steel, would be amply suffi- 
cient. However, steel is relevant not 
only to iron ore but also to all other 
ferroalloy minerals. Therefore, end-use 
data on steel will be provided by the 
Bureau in such a way as to give best 
results not only for iron ore but also 
for other ferroalloy minerals. In the 
Bureau of Mines' new end-use information 
system, steel is separated into six 
TPC's: Carbon steel, alloy steel, tool 
steel, stainless steel, heat-resistant 
steel, and high-strength, low-alloy 
(HSLA) steel. 

Demand for chromium, for example, is 
more closely related to the demand for 
stainless steel than to any other type of 
steel. Similarly, for molybdenum it is 
the consumption of tool steel that 
is most important, and for cobalt it is 
tool steel and perhaps specialty steels 



11 



(high-temperature alloys) . Therefore, 
even though at first steel is thought to 
be a single TPC for iron ore, once it is 
decided to generate end-use data on 
steel, it is wise to consider the several 
steel types as intermediate products com- 
mon for several alloying minerals. 

The basis for the definition and 
selection of a particular TPC is as fol- 
lows: (1) A link backward to supply, (2) 
a link with historical data, (3) a clas- 
sification common to several minerals, 
and (4) a minimum number of TPC's. 
Therefore, the task of selecting the 
appropriate number of TPC's for a primary 
mineral is one of finding the set of 
intermediate products that best satisfies 
all four criteria. 

For steel, the first two of these 
criteria are met by making maximum 
use of the existing data base of the 
Bureau. When the Bureau collects data on 
intermediate products it was determined 
(1) how far these satisfied other desir- 
able criteria and (2) whether these prod- 
ucts could be regrouped in a manner by 
which historical continuity (with the 
preexisting data scheme) was preserved 
while minimizing the number of TPC's. 

Table 1 compares the intermediate 
products for which the Bureau at present 
collects data with the seven proposed 
TPC's for the cobalt end uses. The seven 
letters (a to g) indicate the grouping of 
the Bureau's present list of intermediate 
products within the seven TPC's. For 
example, the Bureau's category Tool Steel 
(d) would be retained as an independent 



TPC, while all the other steel categories 
in the present Bureau classification 
would be grouped together under one TPC, 
Other Steels (e). This concept preserves 
the link between the new end-use data 
collection scheme and the existing data 
base of the Bureau. 

Column 1 of table 1 lists seven 
TPC's for cobalt (a to g) . This may seem 
to be a large number of TPC's for one 
mineral. However, for a mineral such as 
cobalt that finds diverse specialized 
applications, it appears unavoidable. 
One of the basic criteria for defining a 
TPC is that it will be a group of closely 
related products, so that reasonable 
assumptions can be made about contained 
mineral (in this case cobalt) in that 
TPC. 

The six metallic product classes for 
cobalt are common to a host of ferroalloy 
minerals, such as nickel, chromium, co- 
lumbium, tantalum, and tungsten (ta- 
ble 2). In other words, in the new sys- 
tem a TPC such as high-temperature alloys 
is not exclusive to cobalt. It is also a 
TPC for the five other ferroalloys shown 
in table 2. Therefore, across the spec- 
trum of ferroalloy minerals, the number 
of TPC's can still be kept to a manage- 
able level. Penn State has suggested a 
total of 42 TPC's to collect end-use data 
on 23 minerals. 

The test for an additional TPC is 
not whether one more TPC is desirable, 
but whether the objective of the data 
collection system can be met without it. 



12 



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TABLE 2 . - TPC's common for ferroalloy group of minerals 1 



13 





Steel 


(e) 






(a) 
High- 


(b) 
Mag- 


(c) 


Mineral 




High 








Heat 


Carbides 


commodities 


Carbon 


strength, 


(d) 


Alloy 


Stain- 


resist- 


temperature 


netic 


and hard- 






low alloy 


Tool 




less 


ing 


alloys 


alloys 


facing 
alloys 


Chromium. . . 




X 


X 


X 


X 


X 


X 


X 


X 


Cobalt 2 . . .. 






X 


X 


X 


X 


X 


X 


X 


Columbium. . 




X 


X 


X 


X 


X 


X 


X 


X 


Nickel 




X 


X 


X 


X 


X 


X 


X 


X 


Tantalum. . . 






X 


X 


X 


X 


X 


X 


X 


Tungsten. . . 






X 








X 


X 


X 



Excludes manganese, molybdenum, tellurium, vanadium, etc. , which were not part of 
the present study. 

2 Cobalt uses are coded the same way as in table 1. For example (d) means the com- 
modity currently is found in the tool steel TPC. 



End Uses — Description of the Dimension 

The end-use sectors of a mineral 
commodity provide the necessary second 
dimension to a fully specified mineral 
information system, the first dimension 
being the technical product classes 
(TPC's) discussed above. To define end 
uses the Bureau has chosen the SIC 
system. 

End use — for purposes of the new 
data system — is best defined as that use 
at which a TPC is delivered in the 
U.S. economy to a final commercial use, 
such as manufacturing, agriculture, or 
construction. SIC-based commercial uses 
are defined for each TPC such that the 
TPC is used in a consumer good (steel in 
automobiles) , or becomes untraceable fur- 
ther (sulfuric acid in the making of 
paper) . 

A mineral commodity may pass through 
several stages of manufacturing or fabri- 
cation before its final commercial appli- 
cation. In such cases, it may not be 
clear which point of consumption repre- 
sents final commercial use. This problem 
is compensated for by selecting the 
appropriate number of mutually exclusive 
TPC's for a mineral and collecting end- 
use data for each TPC. 

Data availability may further 
restrict the ability to obtain data in 



terms of commercial uses. Therefore, 
intermediate product uses such as 
"paints" may have to be retained as end 
uses , although conceptually more appro- 
priate commercial uses could be conceived 
(for example, automobiles, construction). 
Such exceptions are infrequent and are 
made only when respondents (during prep- 
aration of the questionnaire) indicated 
that they could not provide greater 
detail. 

Distinction Between Commercial Uses 
and Intermediate Product Markets 

Firms generally wish to have infor- 
mation about specific product markets in 
which their own products are used. These 
we have defined as tertiary intermedi - 
ate products . This desire of producers 
to identify product markets often creates 
a conflict with the economic analyst who 
wishes to select commercial uses rele- 
vant to measuring overall demand for 
minerals. 

Fluorine provides a good example to 
illustrate the disadvantage of defining 
intermediate products as "end uses" of 
minerals. Earlier, fluorine was used as 
an illustration to discriminate between 
primary and tertiary intermediate prod- 
ucts in making proper choice of TPC's. 
The same commodity is used as an example 
in this section to discriminate between 
tertiary intermediate products and 



14 



commercial uses for proper determination 
of end uses that measure demand on a 
national scale. 

Table 3 lists some of the major flu- 
orine compounds and the commercial uses 
in which these compounds are consumed. A 
product definition of the markets for 
fluorine is identical with column 3 of 
table 3, "Fluorine compounds." Use of 
such an end-use definition would provide 
information on the consumption of fluor- 
spar (and presumably hydrofluoric and 
fluosilicic acid) in the production of 
various compounds listed, such as alumi- 
num fluoride or various f luosilicates . 
But, it can be readily seen that (1) sev- 
eral fluorine compounds are demanded in 
the same end-use market, and (2) the same 
compound (for example, aluminum fluoride) 
is demanded in different end-use markets. 
Therefore, it can be recognized that a 
product-based definition is clearly inap- 
propriate to describe the end-use markets 
for fluorine. 

Column 2 of table 3, "End-use 
titles," on the other hand lists end-use 
markets for fluorine. Information based 
on these end-use markets will provide a 
basis for understanding the demand for 
all fluorine products in a well-defined 
manufacturing activity. 

Perspectives on the Market 
Versus Product Definition 

The principal reason for the per- 
sistence of the conflict between market 
definitions and product definitions is 
the underlying conflict between the need 
for product data by firms in the indus- 
try, and the market data an economic 
analyst needs to understand demand for 
minerals in the economy. Both are 
useful, but the two are not always 
coincident. 

In the methodology developed for 
this study and described in the earlier 
section, "Symbolic Definition of Techni- 
cal Product Classes," the "secondary" and 
"tertiary" intermediate products are 
ignored (Y ( in equation 2). It is 



assumed that information about the 
consumption of "primary" intermediate 
products in end-use markets (Z f ) is suf- 
ficient to satisfy the general objective 
of an information system that traces the 
flow of materials in the economy. Both 
practical considerations in collecting 
and processing the information and the 
cost-ef f ectiveness of the program justify 
the proposed methodology. 

However, the firms that produce the 
primary mineral products (X ; ) often sell 
them in the market for secondary and ter- 
tiary intermediate products (Y|). 
Because the primary producers (X,) sell 
to the intermediate market (Yj), they may 
not be concerned with the final end use; 
that is, they may not know their cus- 
tomers' markets (Zj). When there are 
several producers of primary products, 
the concern of each of them is to 
increase its share in the market for 
intermediate products. A producer of 
fluosilicic acid, for example, will be 
concerned primarily about a market for 
fluosilicic acid in the production of 
synthetic cryolite (Y,). Whether the 
customer uses its production of synthetic 
cryolite in producing aluminum (Zj), or 
sells it to ceramics manufacturers (A,), 
is usually of minor importance to the 
acid producer. 

Thus the level of information 
desired by firms in the industry may dif- 
fer considerably from the objective of 
the Government in initiating an end-use 
survey. Having recognized this differ- 
ence, the relevant questions then are 

1. Whether the Bureau of Mines can 
generate end-use data in a step-by-step 
sequential manner, tracing consumption of 
a mineral through the several intermedi- 
ate uses to a final commercial use, and 

2. If such a sequential canvass is 
not possible, whether the global data the 
Bureau needs will help the industry suf- 
ficiently in its business decisions to 
provide the necessary incentive for 
industry to participate in an end-use 
data scheme. 



15 



TABLE 3 . - End-use applications of fluorine compounds 



SIC 
code 



End-use title 



Fluorine compounds 



13 
20 

22 

281 
282 
283 

284 

286 

2801 

291 

321 

324 

325 
326 

329 

331 
332 

3334 

3301 

3471 
358 

361 

363 
3601 

376 
38 



Oil and gas extraction 

Food and kindred products 

Textiles 

Chemicals, and allied products: 

Industrial inorganic chemicals 

Plastics, materials, and synthetic resins 

rubber, and man-made fibres. 
Drugs 

Soaps, cleaners, and toilet goods 

Industrial organic chemicals 

Other chemicals 

Hydrofluoric acid, lithium fluoride 
Stone, clay, and glass products: 

Flat glass 

Cement 

Structural clay products 

Pottery and related products 

Abrasives and miscellaneous nonmetallic 

products. 
Primary metal industries: 

Steel mills 

Iron and steel foundries 

Primary aluminum 

Other primary metal industries 

Plating and polishing 

Refrigeration and service machinery 

Electrical and electronic equipment: 

Electric distributing equipment 

Household appliances 

Other electrical and electronic 

equipment. 
Guided missiles and space vehicles, 

and parts. 



Instruments and related products. 
Water treatment 



Chlorine trifluoride, ammonium bifluoride, hydro- 
fluoric acid, silicon tetraf luoride. 

Ammonium bifluoride, fluosilicic acid, copper flu- 
osilicates , sodium fluoride, 
perf luor os yclo butane. 

Boron trifluoride, fluoborates, perchlorof luoro 
acetones. 

Fluorspar, magnesium fluoride, potassium biflu- 
oride, hydrofluoric acid, fluosilicic acid. 

Hydrofluoric acid, aliphatic chlorofluoro hydro- 
carbons, poly (tetraf luorethylene) (PTFE). 

Perchloryl fluoride, silver f luosilicate, per- 
chlorof luoro acetones, fluorinated aromatic 
compounds . 

Fluosilicates of calcium, magnesium, and zinc; 
sodium bifluoride; sodium monofluoro phosphates; 
stannous fluoride. 

Fluoborates, hydrofluoric acid, potassium 
fluoride, etc. 

Aluminum fluoride, boron trifluoride, hydro- 
fluoric acid, etc. 



Aluminum fluoride, cryolite, ammonium bifluoride, 

fluorspar, hydrofluoric acid, lead fluoride, 

lithium fluoride, etc. 
Fluorspar, silicon tetraf luoride, zinc 

f luosilicate. 
Aluminum fluoride, lithium fluoride. 
Aluminum fluoride, cryolite, hydrofluoric acid, 

lithium fluoride, sodium fluoride, magnesium 

fluoride. 
Cryolite, fluoborates, fluorspar, 

f luorozirconates. 

Fluorspar, hydrofluoric acid. 

Cryolite, fluorspar, hydrofluoric acid, sodium 
fluoride. 

Aluminum fluoride, cryolite, fluoborates, hydro- 
fluoric acid, fluosilicic acid. 

Aluminum fluoride, fluoborates, hydrofluoric acid, 
f luorozirconates , PTFE, lithium fluoride, sodium 
fluoride, etc. 

Fluoboric acid, fluoborates, fluosilicic acid, 
sodium bifluoride, zinc tetraf luorosilicate. 

Sulfur hexaf luoride, carbon tetraf luoride, 
carbon tetrafluoride, CC1 2 F 2 , CC1 3 F, CBrF 3 , etc. 

Sulfur hexaf luoride, perchloryl fluoride, 
perf luoro eye lobutane. 

PTFE, carbon tetrafluoride, CHC1F 2 . 

Fluoborates, PTFE, Poly (chlorotrif luorethylene) 
(PCTFE). 

Nitrogen trifluoride, perchloryl fluoride, sul- 
fur hexaf luoride, fluoborates, PTFE, carbon 
tetrafluoride, CBrF 2 . 

Lithium fluoride, magnesium fluoride, fluorspar. 

Fluorsilicic acid, fluosilicates, cryolite. 



16 



The answer to the first question is 
clearly in the negative. The costs of 
collecting and collating data in such 
detail would be excessive. Firms that 
perhaps justifiably complain about their 
own escalating costs in the "unproduc- 
tive" exercise of providing a multi- 
plicity of data to various Government 
agencies also will not be indifferent to 
their share of the costs. Also, the more 
detail in which data are collected, the 
more it will encroach on proprietary 
information of various firms in the 
industry, a situation that neither the 
industry nor the Government considers 
advisable. 

Therefore, an end-use data collec- 
tion system sponsored by a Government 
agency must, of practical necessity, be 
such as to insure (1) a least-cost data 
base adequate for policy decisions and 
(2) the least expenditure of reporting 
time by industries as a whole. The ques- 
tion then is whether such a data base 
will give the industries a return commen- 
surate with their voluntary participation 
in collecting and reporting such data. 
Reporting efficiency is a significant 
consideration in designing mineral end- 
use surveys. 

It is important here to recall that 
the demand for minerals is derived 
demand. Therefore, for example, if the 
Government is in a position to estimate 
what impacts its policy regarding the 



construction market may have on the 
demand for mineral commodities, this will 
provide several benefits to mineral pro- 
ducers. The direct benefit is in having 
such information to guide business deci- 
sions. An indirect benefit will accrue 
if such information will help improve 
Government decisions concerning its pol- 
icies toward that sector or industry. 
For another, the data base itself will be 
valuable for market planning by firms. 
It is possible that a few large firms may 
already have such information and hence 
may apparently not be benefited by it. 
But even in such instances, private esti- 
mates are no substitute for industrywide 
data. The existence of trade associ- 
ations and their role in collecting 
statistics attest to the value of indus- 
try data. Similarly, trade associations 
themselves will benefit from SIC-based 
end-use information because it provides a 
comparable data base between competing 
industries and hence better interindustry 
data for association members. 

The new end-use data base described 
here will not substitute for a firm's own 
market research needs. A firm's "need to 
know" regarding the markets for its prod- 
ucts cannot be met fully by a service 
from the Government. What the Bureau is 
providing with the end-use data is a 
better information base for intraindustry 
and interindustry comparisons within 
which individual firms can pursue their 
own marketing interests. 



APPROPRIATENESS OF SIC TO DEFINE END USES 



Standard Industrial Classification 
(SIC) is the most widely understood and 
widely used "classification of establish- 
ments" to categorize the U.S. industrial 
structure. Therefore, the Bureau's 
objective of linking demand information 
for minerals with domestic economic 
activity is best achieved by defining end 
uses on the basis of SIC. However, the 
appropriateness of SIC to define end uses 
of minerals is not without its problems. 

There are questions about whether 
SIC "establishments" are appropriate to 
define end-use categories. There are 



also questions about the appropriate 
detail of SIC groupings, and there are 
doubts about the ability of the various 
industries to report end-use data on the 
basis of SIC. 

The first two questions are not 
entirely independent of each other. How- 
ever, in order to separate the method- 
ological problem from the choice of 
detail, these two questions are discussed 
separately. 

SIC classifies establishments based 
upon criteria such that establishments in 



17 



the industry (1) consist largely of those 
goods and services defining an industry, 
and (2) account for the bulk of the spec - 
ified goods and services provided by 
establishments in that industry. The 
underlined words emphasize the major 
criticism of using SIC to define end-use 
markets for minerals in terms of goods 
produced. 

It was a conclusion of studies at 
Penn State that such definitional prob- 
lems are not unique to SIC and would 
exist in any classification scheme. This 
can be readily illustrated. Those firms 
that participated in the present study 
agreed that "construction" is an appro- 
priate end-use category for mineral com- 
modities. But not all industries that 
serve construction markets would agree to 
have one end-use category, "construc- 
tion." It was generally believed that 
"building construction" should be treated 
as a separate subcategory. Those indus- 
tries that serve a specific market in 
building construction, such as "builders' 
hardware," wished to have that specific 
market identified as a second-order sub- 
category, and even then there was no 
agreement on how the category "builders' 
hardware" should be defined. There were 
those who insisted that furniture hard- 
ware is part of the building construction 
market and should therefore be classi- 
fied as "builders' hardware"; others 
disagreed. 

The above example illustrates that 
even in the case of a universally 
accepted category such as "construction," 
there was no agreement as to how many 
subcategories are adequate, much less as 
to the proper definition of the subcat- 
egories. In other words, definitional 
problems are inherent in any classifica- 
tion scheme, and using an SIC-based 
classification of "construction" is no 
worse than using any alternative scheme. 

The second challenge to use of SIC 
regarded choice of the appropriate level 
of the SIC system, which is based on a 
hierarchy of several levels of classifi- 
cation. SIC major groups are two-digit. 
These are further classified into 



three-digit groups that may in turn be 
classified into four-digit industries. 8 
For purposes of collecting statistics, 
the Department of Commerce has further 
elaborated upon SIC to define five-digit 
product classes and seven-digit products 
in order to specify products manufactured 
in SIC establishments. 

It is necessary to distinguish the 
five- and seven-digit product classifica- 
tion used by the Deparment of Commerce 
from the Standard Industrial Classifica- 
tion of economic establishments that goes 
no further than SIC four-digit indus- 
tries. The five- and seven-digit product 
classification is entirely inappropriate 
for classifying end uses of minerals. 
The new data system of the Bureau is con- 
fined to the two- , three- , and four- 
digit industries defined in the Standard 
Industrial Classification. 

The new data system of the Bureau 
makes use of the hierarchical structure 
of the SIC. Intercommodity comparison is 
achieved at the SIC two-digit level. 
Demand information for each technical 
product class is obtained for all rele- 
vant SIC two-digit major groups and 
three-digit groups. In those instances 
where a particular four-digit industry 
represents a major end-use market, that 
industry is classified as a separate end 
use. 

The third and last question regard- 
ing the appropriateness of the use of SIC 
to classify end uses of minerals relates 
to the ability of firms in the industry 
to report data. This ability differs 
from one segment of the mineral industry 
to another and among different firms. 
Therefore, for each TPC , a separate 

8 SIC 3 361 provides an example of the con- 
cept of the four-digit hierarchy. The 
first two digits, 33, provide the code 
of a major group, "Primary Metal In- 
dustries". The third digit, 6, shows 
it is the Nonferrous Foundry group 
within the major group, and the fourth 
digit in 3361 shows it precisely as 
the Aluminum Foundry portion of the 
Nonferrous Foundry group. 



18 



determination was made in consultation 
with industry representatives to assure 
that firms in the industry are indeed 
capable of reporting the required end-use 
information. The reporting burden on 
firms is also further reduced consider- 
ably by making use of translators to con- 
vert into the SIC end-use format data 
that are already available from existing 
reports from the Government or trade 
associations. 

Service Sectors Excluded 

For purposes of the new data system, 
the SIC end-use classification is limited 
to commercial uses in manufacturing. 
Service sectors are excluded. This is 
done because 

1. In the overwhelming majority of 
cases, manufacturing is the appropriate 
end-use sector for minerals. 

2. Consumption in manufactured 
goods, such as consumer durables, can be 
considered as the final market because 
over the life of a good, it is not avail- 
able for reuse. 

3. Recycling of manufactured goods 
is a source of secondary supply for sev- 
eral minerals commodities. If the manu- 
factured goods generate secondary supply, 
that fact provides a good test that the 
buyers of those goods should be con- 
sidered as end users. 

4. Even in those instances where a 
service sector may appear to be highly 
relevant as an end-use category (for 
example, the electrical utility market 
for copper) , it is possible to specify an 
appropriate SIC manufacturing sector 
without any loss of information. There- 
fore, for purposes of end-use data, it is 
unimportant whether a manufacturing sec- 
tor or a service sector is specified, 
except for consistency in practice. 

5. More often, in place of one 
well-defined manufacturing sector, it 
would be necessary to specify several 
service sectors that are not mutually ex- 
clusive, thereby increasing definitional 



problems, as well as creating the poten- 
tial for inconsistent reporting of data. 

6. The intensity-of-use of the 
materials and substitution between mate- 
rials are relevant only in terms of manu- 
facturing sectors. An information system 
that identifies these phenomena is cru- 
cial to determining the nature of the 
demand for minerals and in assisting in 
forecasting demand for minerals, a major 
objective of the new data system. 

Two- and Three-Digit SIC 
Classes Preferred 

One objective of the new end-use 
reports is to improve the data base for 
forecasting demand for primary minerals, 
given activity levels in end-use markets. 
This implies that the end uses specified 
for mineral commodities should be those 
(1) that are important for estimation of 
demand and (2) for which economic fore- 
casts are readily available. Both of 
these goals are best attained through use 
of a limited number of mutually exclusive 
end uses. It would also be easier for 
the firms responding to Bureau canvasses 
if the end uses listed on a survey form 
are held to the minimum number necessary 
to capture the significant consumption 
patterns for that commodity. 

The basic requirements of the end- 
use information system are best served if 
the proposed SIC end uses are limited to 
two-digit and three-digit groups, with 
exceptions provided when necessary. This 
can be done in an SIC end-use classifica- 
tion because SIC is structured so that 
four-digit industries are grouped within 
three-digit groups, which in turn are 
grouped within a two-digit major group. 
Hence, if the analyst specifies a three- 
digit group instead of a four-digit 
industry, or a two-digit major group 
instead of a three-digit group, there is 
no loss in distinction among groupings 
despite a loss of detail in a particular 
group. Each specified end use should be 
sufficiently descriptive of a particular 
major end use of the mineral commodity. 
In general, as proved in several case 
studies, this distinction is achieved at 



19 



the SIC three-digit level. For cases 
where total consumption at any two-digit 
level is a minor but reportable part of 
the total consumption, distinction may be 
attained at the two-digit level. 

As a general rule, limiting end-use 
classification to SIC two- or three-digit 
groups also helps to minimize some of the 
common problems associated with the end- 
use classification itself or in reporting 
data. It is certainly easier for a min- 
eral producer to report his shipments to 
the two-digit group, SIC 25, Furniture 
and Fixtures, than, for example, if he 
were asked to specify end uses in three- 
digit groups, SIC 251, Household Furni- 
ture, and SIC 255, Office Furniture. By 
the same token, it would be many times 
more difficult if the respondents were 
asked to specify four-digit industries 
such as Metal Household Furniture 
(SIC 2514) and Mattress and Bedsprings 
(SIC 2515). 

Even if a mineral producer has the 
ability to report shipments to such four- 
digit industries as SIC 2514 or SIC 2515, 
that does not imply that data reported at 
such levels would be more accurate that 
data reported only at the corresponding 
three-digit level. In fact, the converse 
may be true. At the more aggregated lev- 
els (smaller SIC numbers), customer iden- 
tification becomes more clear and hence 
may result in more consistent reporting 
among respondents. One advantage of SIC 
is its hierarchical classification system 



which permits different firms with dif- 
fering abilities to report data at the 
level most convenient to each, without 
losing comparability for data among dif- 
ferent reporting firms. 

By collecting data at higher levels 
of aggregation (SIC two- and three-digit 
groups) , there is a reduction in data 
incompatibility among reporting firms. A 
producer may combine into SIC 3519 its 
shipments to Marine Engines (SIC 3519) 
and also to Ship Building and Marine 
Equipment (SIC 373). This error could 
then invalidate the data for SIC 373 
received from this respondent. However, 
if SIC 37, Transportation Equipment, is 
considered, the error at the two-digit 
level caused by the producer's reporting 
procedure would be negligible, because 
shipments to marine engines then becomes 
such a small percentage of total ship- 
ments to all transportation equipment. 
In general, data tend to become more 
reliable at higher levels of aggregation 
(smaller SIC numbers). 

As a final justification of higher 
aggregation, we note that some firms have 
indicated that in certain cases if data 
are reported at the four-digit level, it 
may amount to divulging their customers' 
identity, and hence, they wish to report 
data only at three- or two-digit levels. 
Therefore, by specifying two- or three- 
digit groups, problems of confidentiality 
also tend to be minimized. 



SURVEY FORMS AND METHODS 



Identification of the TPC dimension 
and the end-use dimension is only the 
necessary first step in developing sta- 
tistics about consumption of minerals in 
commercial uses. It is next necessary to 
integrate these principles into a con- 
venient format to gather information. 

In the new data system, this is 
achieved by preparing translators to con- 
vert existing data into SIC format and by 
designing new survey forms for those 
TPC's for which a new canvassing format 
is required. 



Design of the Survey Form 

Before a canvass survey form is 
designed for a given mineral, it is 
essential to determine (1) the TPC's for 
the mineral, (2) whether there is a need 
for a separate canvass survey form for 
each of the TPC's or if several TPC's can 
be accomodated as separate columns com- 
bined into one canvass survey form, and 
(3) a simple form design to capture the 
essential information and to facilitate 
uniform reporting by all firms that are 
canvassed. 



20 



The canvass survey form may be 
designed for a mineral or for each TPC 
for that mineral. The general principle 
adopted in the end-use surveys is to have 
a separate questionnaire for each TPC. 
This follows essentially from the defini- 
tion of TPC's and the care exercised in 
defining TPC's. 

Sometimes, however, the cost of the 
survey is minimized by designing one com- 
bined questionnaire for several TPC's. 
This occurs when (1) the end-use sectors 
of two or more potential TPC's are more 
or less common to both, (2) the TPC's are 
produced by firms in the same industry, 
or (3) both of these factors are com- 
bined. An example of a combined form 
with three TPC's is shown in table 4, 
a questionnaire for zinc compounds. 
Here an end-use survey for three 
zinc compounds — zinc oxide (the most 
important zinc compound) , other zinc 
compounds, and zinc dust^ — are all 
combined into one canvass survey 
form. 

Table 4 also illustrates the basic 
design of an SIC-based questionnaire to 
canvass firms in a particular industry. 
The first two columns describe the SIC 
classifications relevant for this TPC. 
Data on shipments are entered in the last 
three columns. 



"zinc dust either substitutes for zinc 
compounds in some end-use sectors, 
such as paints, or is the starting 
point for the continued production of 
other zinc compounds. 



The first stage in the design of 
this questionnaire was the process of 
identifying the several secondary and 
tertiary intermediate products of the 
TPC, which led to a table such as 
table 5. This second table serves two 
purposes. First, it insures that all the 
relevant end-use sectors are considered 
for inclusion in the canvass survey form. 
Second, it gives a preliminary idea as to 
whether it is sufficient to ask for data 
for all zinc compounds together, or 
whether a distinction is required among 
the more important products. It can be 
seen from table 5 that in several end-use 
sectors both zinc oxide and other zinc 
compounds derived from zinc oxide are 
used. Thus, this type of table allows 
the analyst to draw a first conclu- 
sion that data on zinc oxide should be 
collected separately from data on other 
zinc compounds. 

The second step in the design of a 
questionnaire is to correlate the mine- 
ral's end uses such as are shown for zinc 
in table 5 with SIC groups or industries. 
Whether a three-digit group or a four- 
digit industry is selected will depend 
upon (1) the percent of total consumption 
accounted for by that SIC category and 
(2) the extent of overlap in consumption 
among various four-digit industries in 
the three-digit group. The general rule 
that has been developed, with the help of 
several case studies, is that a four- 
digit industry will be specified only in 
exceptional cases when required to give 
clarity to the data or when the consump- 
tion in the specified industry is highly 
significant. 



21 



TABLE 4. 



Proposed canvass survey form for zinc compounds 



SIC 
code 



End-use industries 



Shipments , pounds of contained zinc 
Zinc Zinc Other 
dust oxide zinc 
compounds 



01' AGRICULTURE 

22 TEXTILES 

24 LUMBER AND WOOD PRODUCTS 

26 PAPER AND ALLIED PRODUCTS 

28 CHEMICAL AND ALLIED PRODUCTS 

2816 Inorganic pigments 

2822 Synthetic Rubber (vulcanizable 

elastomers) 

2823 Synthetic manmade fibers, rayon 

284 Soap, cleaners, and toilet goods 

285 Paints, varnishes, and allied products.... 

2899 Soldering and welding flux 

2801 2 Other chemicals 

28 CHEMICALS AND ALLIED PRODUCTS Subtotal 
2992 LUBRICATING OILS AND GREASES 

30 RUBBER, NATURAL 

32 CERAMICS AND GLASS PRODUCTS 

325 Floor tile and other structural clay 

products 

326 Pottery and related products 

3201 2 Other ceramics and glass products 

32 CERAMICS AND GLASS PRODUCTS Subtotal 



347 


ELECTROPLATING, PLATING AND COATING 


3679 


FERRITES 




OTHER IDENTIFIED END USES (Specify) 












UNIDENTIFIED END USES 




EXPORTS 




TOTAL 



'Corresponds to Division A, "Agriculture, Forestry, and Fishing"; 01 is used to 

avoid alphanumeric coding. 
2 This is not an SIC code. Subscript 01 is added to a 2-digit code to report all 

other shipments to that 2-digit category, except those 3- and/or 4-digit 

categories specified. 



22 



TABLE 5 . - End uses of zinc compounds 



End-use description 



Zinc 
oxide 



Zinc 
chloride 



Zinc 
sulfate 



Other zinc 
compounds 



Synthetic rubber. , 
Natural rubber. . . 

Rayon 

Textiles 

Wood preservative, 

Cosmetics 

Fungicides 

Paper 

Lubricants 

Dry batteries. 
Electroplating. . . 

Galvanizing 

Ceramics 

Phosphors 

Laundry soap 

Agriculture 

Dyes 

Cement plaster. . . 
Pharmaceuticals. . 
Paints , 



X 



X 



X 
X 
X 



Table 6 shows an end-use question- 
naire for hot-dip galvanized steel, one 
of the more lengthy forms. A basic fea- 
ture of the standardized design of this 
questionnaire is the use of the tiered 
structure of SIC that is intended to 
increase the accuracy of data reported at 
higher levels of aggregation, such as the 
SIC two-digit group 34. This tiered 
structure satisfies the objective to col- 
lect data as accurately as possible for 
all significant consumption (that is, 
greater than or equal to 1 percent of 
total) within SIC two-digit major groups. 
In the case of agriculture, SIC end use 
is specified at the two-digit level. In 
other instances, a three-digit group 
(341) or a four-digit industry (3446) 
is specified. In such cases where 



three-digit groups or four-digit indus- 
tries are specified, the questionnaire 
has the respondent calculate a group sub- 
total for each relevant two-digit major 
group. 

As a general rule, all survey forms 
are designed with separate categories for 
each SIC end use that constitutes more 
than 1 percent of total shipments. The 
arbitrary cutoff point of 1 percent has 
been established below which an SIC end- 
use questionnaire entry line will not be 
assigned. This cutoff serves as a sig- 
nificance test that, while it limits 
entries on a questionnaire to a manage- 
able number, also provides data for all 
significant uses. 



23 



TABLE 6 . - Questionnaire showing shipments of hot-dip galvanized 

steel by end-use industries 



SIC 
code 



End-use industries 



Shipments , 
net tons 



01 ' AGRICULTURE 

CONSTRUCTION 

1 52 Residential building construction 

154 Nonresidential building construction 

16 Highway and other heavy construction 

CONSTRUCTION Subtotal 

25 FURNITURE AND FIXTURES 

2514 Metal househole furniture 

2501 2 Other metal furniture and fixtures 

2 5 FURNITURE AND FIXTURES Subtotal 

34 FABRICATED METAL PRODUCTS 

341 Metal cans and shipping containers 

3446 Architectural metal work 

3462 Iron and steel f orgings 

3496 Miscellaneous fabricated wire products 

3401 2 Other fabricated metal products 

34 FABRICATED METAL PRODUCTS Subtotal 

35 MACHINERY, EXCEPT ELECTRICAL 

352 Farm and garden machinery 

353 Construction, mining, and related machinery 

3551 Food products machinery 

3501 2 Other machinery , except electrical 

35 MACHINERY, EXCEPT ELECTRICAL Subtotal 

36 ELECTRIC AND ELECTRONIC EQUIPMENT 

361 Electric distributing equipment 

363 Household appliances 

3644 Non-current-carrying wiring devices 

3601 2 Other electric and electronic equipment 

36 ELECTRIC AND ELECTRONIC EQUIPMENT Subtotal 

37 TRANSPORTATION 

3714 Motor vehicle parts and accessories 

3701 2 Other transportation 

37 TRANSPORTATION Subtotal 

39 MISCELLANEOUS MANUFACTURING 

394 Toys and sporting goods 

3901 2 Other miscellaneous manufacturing industries 

39 MISCELLANEOUS MANUFACTURING Subtotal 

OTHER IDENTIFIED END USES (Specify) 



UNIDENTIFIED END USES 



TOTAL 



Corresponds to Division A, "Agriculture, Forestry, and Fishing"; 01 is used to avoid 
alphanumeric coding. 

2 This is not an SIC Code. Subscript 01 is added to a 2-digit code to report all 
other shipments to that 2-digit category, except those 3- and/or 4-digit cate- 
gories specified. 



24 



Separation of Other Uses To Prevent 
Overaggregation 

In quantitative questionnaires, a 
category such as "all other" is useful to 
capture all the miscellaneous categories 
of consumption not included among those 
separately listed. In the canvass forms 
designed for the end-use data collection 
system, this miscellaneous "all other" 
category is kept as small as possible. 

For example, a firm that ships hot- 
dip galvanized products to the category 
Transportation may sell the bulk, of these 
shipments to automobile manufacturers 
(SIC 3714). The same firm may also sell 
products to other transportation equip- 
ment manufacturers, such as railroad 
equipment and shipbuilding, neither of 
which may be individually signifi- 
cant, although they may be significant 
collectively. 

If automobiles, railroad equipment, 
and shipbuilding were each separately 
listed, there would be three end-use cat- 
egories for Transportation, which adds 
length to the form while in this case 
only adding trivial data. Moreover, the 
significance test should not be violated, 
or the end-use classes will multiply rap- 
idly. On the other hand, if the Trans- 
portation classification is limited to 
automobiles, the respondent's shipments 
to other types of transportation manufac- 
turers would be reported in a general 
miscellaneous catchall category, "All 
other. " 

To avoid such overaggregation into a 
general miscellaneous category, a method 
was developed wherein a coded "other" 
category is provided for each SIC two- 
digit group (for example, 3701, Other 
Transportation) . This means that the 
residuals appropriate for each two-digit 
major group can be separately reported. 
This insures, at the two-digit level, 
that information is as accurate as could 
be expected. 

However, such liberty within SIC 
numbering causes a conflict with SIC 
itself. In the SIC system, there are 



miscellaneous categories. All the cate- 
gories not specified elsewhere for a two- 
digit category ordinarily are classified 
within a three-digit category in which 
the last digit is a 9. Thus, SIC 359 is 
Miscellaneous Machinery, Except Electri- 
cal. This methodology of using 9 is also 
repeated at four-digit levels, such as 
with SIC 3589, Service Industry Machines, 
Not Elsewhere Classified. The existence 
of categories such as 359 complicates the 
problem. Because SIC 359 is defined in 
SIC to include only the miscellaneous 
machinery specifically mentioned in the 
SIC manual, the use of an XX9 category 
for a general miscellaneous category 
would be misleading for our purpose. 

What is needed instead is a true 
"all other" category to capture shipments 
not only to SIC 359, but also to all 
other three-digit categories not speci- 
fied within 35X in the survey form, such 
as 354, 356, or 357. The special codings 
such as 3501 were developed by Penn State 
as a solution to this problem. The "01" 
is suffixed to an SIC two-digit category, 
such as SIC 35, to provide a place to 
report shipments to that particular SIC 
two-digit category rather than to the 
three-digit groups or four-digit indus- 
tries separately specified in each ques- 
tionnaire. This solves. the problem. 

To return to the previous example, 
the questionnaire asks the hot-dip gal- 
vanizer to report shipments to SIC 3714, 
Motor Vehicle Parts and Accessories, and 
to 3701, Other Transportation Equipment. 
This format insures that (1) data are 
accurate at the two-digit level and (2) a 
single catchall miscellaneous category 
will not overwhelm the data base. How- 
ever, in a technical sense, 3701 is not 
an SIC category. The "01" coding concept 
is used because no such code exists in 
SIC; hence, its use will not conflict 
with any of the existing SIC categores. 

Consider two firms conducting hot- 
dip galvanizing, and that although one 
firm is identical to the above case, 
the other is a firm that for some reason 
(because it sells through a sales agency 
or is otherwise unable to make a 



25 



determination of a customer's activity) 
does not know what portion of its ship- 
ments is consumed in "automobiles" versus 
"other transportation equipment." How- 
ever, the firm can report how much is 
consumed in all "transportation equip- 
ment." The above-suggested format allows 



the second firm to report its data aggre- 
gated at the suggested level, without 
forcing it to report at a level of detail 
at which it is incapable of reporting, 
the example below shows how the second 
firm will report its "other" shipments on 
the line, SIC 3701. 



SIC code 


37 


3714 


3701 


37 



Description of end-use industry 

TRANSPORTATION EQUIPMENT 
Motor vehicle parts and accessories 
Other transportation equipment 

TRANSPORTATION EQUIPMENT Subtotal 



Shipments 
(example) 



120 
120 



If for a different commodity, for 
example, aluminum, shipments to both 
motor vehicles and aircraft and parts are 



significant, the questionnaire 
designed as shown below: 



can be 



SIC code 



Description of end-use industry 



Shipments 
(example) 



37 TRANSPORTATION EQUIPMENT 

371 Motor vehicles and equipment 80 

372 Aircraft and parts 10 
3701 Other transportation 10 

37 TRANSPORTATION EQUIPMENT Subtotal 100 



Note that in both cases the two- 
digit (SIC 37) information provides a 
good total. This flexible questionnaire 
design format allows collection of data 
for shipments to specific three-digit and 
four-digit SIC categories, the signifi- 
cance of which varies among minerals. 
The format captures all residual ship- 
ments to the SIC two-digit code catego- 
ries specified for each mineral commodity 
and also provides reliable data at the 
SIC two-digit level for all mineral 
commodities. 

The design of a survey questionnaire 
also includes a few categories that are 
not SIC-coded end uses. Of these, "Other 
Identified End Uses (Specify)" is a cat- 
egory specifically inserted in an effort 
to induce a respondent firm to report 
shipments to an end use not otherwise 
included on the questionnaire but which 
is significant for that particular 
respondent firm. The respondent is 
expected to briefly identify that special 
end-use sector in such instances. Space 



is provided on the questionnaires for 
this purpose. This category, "Other 
Identified End Uses," also provides for 
respondent firms to report shipments to 
new end uses as they arise. 

The additional questionnaire cate- 
gories "Other Unidentified Shipments," 
"Exports," etc., are self-explanatory. 
Whenever interfirm sales are common in an 
industry, provision is also made to 
report such sales. 

Questionnaires are designed so that 
firms report their shipments by weight, 
because quantity data are needed to link 
the intermediate product to the contained 
weight of the mineral and, therefore, to 
U.S. mineral requirements. However, 
there may be special situations such as 
metal carbides for which the weight of 
material sold is so small that some firms 
maintain records only on the basis of 
dollar sales. In such instances, data 
can be collected by the Bureau on the 
basis of dollar sales, provided the 



26 



survey form also requires the firm to 
supply a conversion factor to convert the 
dollar sales figures into a measure of 
contained mineral. This conversion fac- 
tor of necessity will have to be an aver- 
age for each respondent of all his/her 
products and for all the sales contained 
in the special TPC. Because prices may 
fluctuate from time to time, the firm 
should be asked to report the conversion 
factor for each year in such cases. But 
collection of end-use data on a dollar 
sales basis is a poor approximation of 
the desired end-use data by weight. 
Hence, monetary values should be resorted 
to only when absolutely necessary. 

A Modified Survey Form 

The design of the typical survey 
form discussed in the previous section is 
flexible enough to be adapted to the par- 
ticular information needs of an unusually 
complex mineral market. Table 7 is a 
canvass survey form designed for survey- 
ing producers of high-temperature alloys 
that contain many minerals. 

The survey form for high- 
temperature alloys consists of a Work 
Sheet that is retained by the respondent 
and a Reporting Form submitted to the 
Bureau. Each of these sheets is further 
subdivided into Section I, Average Nom- 
inal Composition of High-Temperature 
Alloys Produced, and Section II, Ship- 
ments by End Uses. Section II of the 
reporting form is identical in all 
respects to tae general case discussed 
earlier. The reasons for the differences 
between the Work Sheet and the Reporting 
Form are explained below. 

Section I provides space for 
respondent firms to report a weighted 
average of the composition of each firm's 
product mix. This feature is designed to 
improve the information base that is used 
to link the demand for the primary metals 
to end-use sectors. Entries in section I 
are coefficients for various metals, as 
discussed earlier. Section I provides 



space for the respondent to estimate the 
amount of cobalt, chromium, and other 
ferroalloy metals incorporated in the 
products shipped to various end-use 
sectors. 

Information reported in section I 
considerably minimizes the problems asso- 
ciated with the use of an average coef- 
ficient for purposes of mineral end-use 
estimation. This is because, although 
high-temperature alloys are a very diver- 
gent group of alloys, firms in the indus- 
try tend to specialize in a limited range 
of products. This fact was used in the 
design of the survey form so that, by 
directing each respondent firm to report 
the average composition relevant to 
itself, the average metal composition for 
all firms can be brought as close as pos- 
sible to true average for all metal con- 
tained in the total product shipped to an 
end-use sector. In other words, by suit- 
ably designing the survey form, the 
Bureau c^n obtain an average measure of 
contained cobalt that is unique to the 
particular product mix of each firm 
instead of using a national average 
coefficient to allocate cobalt for all 
high-temperature alloys. This measure 
is also linked to the relevant end- 
use markets for the particular product 
mix. 

Section II of the Work Sheet is fur- 
ther segmented to parts A, B and C. This 
is done to insure more accuracy and 
more uniformity in reporting. Because 
respondents return the Reporting Form but 
retain the Work Sheet, the respondent can 
place confidential data on the Work Sheet 
in order to calculate data requested on 
the Reporting Form. (Note. — A distinc- 
tion was made between the design of the 
Work Sheet and the Reporting Form. Some 
firms in the industry felt that the 
detailed exercise required to complete 
the Work Sheet would provide information 
that is confidential. The asymmetric 
design devised by Penn State means that 
confidential data need not be placed on 
the Reporting Form. ) 



27 



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28 



High-temperature alloys are not 
always sold directly to the customers by 
the producing firms. Often, shipments 
are made to intermediate fabricators, 
such as forge shops or casting works.. 
During the case study on high-temperature 
alloys, several firms insisted that forge 
shops and casting works be designated as 
end-use markets for high-temperature 
alloys. This would have caused serious 
dilution of the end-use information. 
Furthermore, it would also have allowed 
those firms in the industry that did not 
want to report market details to report 
ambiguously much of their shipments as 
going to forge shops and casting works. 
They could do this despite the fact that 
sales practice in the industry is such 
that end-use destinations are rather 
well-known to producers through customer 
and product identification. Also, there 
was no guarantee that all the firms in 
the industry would report data in the 
same manner, because the more con- 
cientious firms would report estimates 
shipments to end-use sectors, while other 
firms might not do so. 

All these complications were avoided 
by providing a Work Sheet that allows 
each respondent firm to record the firm's 
direct shipments to end uses in part A. 
Part A of the Work Sheet also lists non- 
captive forge shops and noncaptive cast- 
ing works as two quasi end uses. Part B 
of the Work Sheet directs the firms to 
show shipments made directly to forge 
shops in terms of the end-use markets 
that the firm estimates for their forge 
shop customers. Part C does the same for 
shipments made to casting works. The 
horizontal summation for each row across 
parts A, B, and C then gives the total 
shipments by each respondent to each SIC 
end-use market. For example, the quan- 
tity shipped to SIC 372, Aircraft and 
Parts would be the sum of the quantities 
shown for the SIC 372 row on part A, 
part B, and part C of the Work Sheet. 
This total is then entered for SIC 372 on 
the Reporting Form, which is returned to 
the Bureau. 



This survey form, which is unique to 
high-temperature alloys, also points to 
the cost effectiveness of the two- 
dimensional information system now being 
introduced by the Bureau. Such a two- 
dimensional approach would enable the 
Bureau of Mines to collect, by means of 
one annual canvass, all the relevant 
information for eight or more metals 
without any loss of accuracy. If 
instead, the information system was 
designed for each primary metal, there 
would be a minimum of eight separate can- 
vasses, one each for each metal specified 
in section I of table 7. 

Lead: An Example of a New SIC-Based 
Survey Form 

Table 8 shows section 4 of the 
Bureau of Mines' 1978 revision of the 
lead survey form. 10 Section 4 provides 
an example of an SIC-based replacement of 
an older Bureau form. The old format of 
section 4 of the previous survey form is 
shown in table 9. The new format repre- 
sents a compromise between the standard 
format recommended by Penn State for end- 
use questionnaires and the desire of the 
Bureau's analysts to have historical con- 
tinuity with statistics derived from the 
earlier form; thus, the format shown in 
table 8 should be considered an inter- 
mediate step to the general SIC format 
recommended for the Bureau's end-use 
questionnaires. 

The new format differs from the old 
primarily in having two new columns 
inserted after the first column, "Inter- 
mediate products." The two new columns 
are labeled "SIC Code" and "End-use 
industries," column 2. The next column, 
"ADP Code," serves merely as numerical 
identification for data processing 
clerks. The last four columns — "Soft 
lead" (201) to "Lead in copper-base 
scrap" (204)--are identical to the last 
four columns in the older lead survey. 



1 °Lead Secondary Smelter and Consumer 
Report" (Form 6-1108-MA, Nonf er. ) . 



29 



TABLE 8. - Revised lead survey form 



4. Consumption of lead by class of product and ond-uso industry (Short tons of load content) 






Intermediate 
product! 

(1) 


SIC 
Code 


End-in* 

industrial 


Code 


Soft lead 
(201) 


lead in 

ontimoncol 

lead 

(202) 


Lead in 
alloys 

(203) 


copper-bate 
wrap 

(204) 


METAL PRODUCTS: 


3482 
- 3482 


Shot 


301 










Ammunition 


Bullets 


302 












35 

36 

371 

370 U 


Machinery except 


304 










Bearing metals 


Electrical and electronic 


305 










Motor vehicles and 


306 












'Other transportation 

eauipment 


307 










Brass and bronze- 3351 Brass and 

ingots, billets bronze 


309 










r ui J 3o1 
Cable covering 1 




310 










Communication coble 


311 










Calking lead 15 Buildina construction 


313 












36 

371 


Electrical machinery and 


314 










Casting metals (die, 
permanent mold, 
and slush-weights 


Motor vehicles and 


315 










370 1-^ Other transportation 

equipment 

3443 Nuclear radiation 

shielding 


316 












317 










Pipes, traps and 
other extruded 
products 


15 
3443 




319 










Storage tanks, process 

vessels, etc 


320 












15 Building construction 

3443 Storage tanks, process 

vessels, etc 

3693 Medical radiation 

shielding 


322 












323 












324 














326 












341 

367 

360 U 


Metal cans and shipping 


327 










Solder 


Electronic components 


328 












Other electrical machinery 


329 












371 Motor vehicles and 

equipment 


330 










Storage battery 


"36911 Storage batteries-SLI 

automotive 

36912 Storage batteries- 
industrial and traction 


332 










grids, posts, 
etc. metal 


333 










Storage battery 
oxides 


3691 1 Storage batteries-SLI 

automotive 

36912 Storage batteries- 

industrial and traction 


335 










336 










_ 371 Motor vehicles and 
Terne metal 

equipment 


338 










_ 27 Printing and allied 
Type metal 

industries 


339 










Other 

metal 34^/Other metal products 


340 












285 

32 

281 


Paints 


342 










PIGMENTS: 

Red lead and litharge - 


Glass and ceramic 


343 










(for other than 


Color 


344 










storage batteries) 


28 Other pigments 


345 










CHEMICALS: 

Lead alkyls 2911 Petroleum refining 


347 










MISCELLANEOUS USES: (please specify)**' 


350 






















TOTAL 




399 



















^Thit is 


nol an SIC product clatt- 


.!/ Include 


1 collaptible tubes, toil, a 


Vinclude 


s powder, rubber and pi 



i added to a 2-digit code to report other conso 
aling, galvaniiing, plating and fishing weights 
additives, anodes, steel products, etc. 



30 



TABLE 9. - Old lead survey foi 



4. Consumption of lead by doss of product (Short tons of lead content) 



Products 

HI 


Code 


Sail lead 
(2011 


leod in 

anlrmontol 

lead 

12021 


leod in 
oltoyi 

12031 


lead in 

copper baie 

scrap 

{204| 


METAl PRODUCTS 
Ammunition — billets shot, wire 


301 










Renrinrj mptnk (nvrj % Sh) 


302 










Brass and brome ingot 


303 










Coble covering and sleoving 
Invg J, Sbj 


304 










Calking lead 

Casting metals (die, permanent mold, 


305 










306 










Collapsible tube blanks, disks 


307 










Foil 


308 










Pipes, traps, and other extruded 


309 












310 












311 










Sloroge bottery grids, posts, etc., 
of SbPb lavg * Sb| 


312 












313 










Terne metal 


314 












315 










PIGMENTS: 
While lead 


317 










Red lead and litharge (for other than 
storage batteries! 


318 










Other (please specify) 


319 










CHEMICALS: 


321 










Lead arsenate 


322 










Other (please specify/ 


323 










MISCELLANEOUS USES: 


325 










Got vani zing 

Leod plating 

Weights and ballast 

OTHER USES (please specify) 


326 










327 










328 










329 










TOTAL 


399 






















Signolurt 


I, lie 


Dal, 



31 



A major difference between section 4 
of the 1978 lead survey form and the SIC 
survey forms proposed for other com- 
modities is the rigidity of the end-use 
classifications of the new lead survey. 
In the revised lead survey, each respond- 
ent firm is asked to report its shipments 
to the selected few end uses specified 
for each intermediate product. There is 
no provision in this intermediate form to 
improve the accuracy by accumulating 
data at SIC two-digit levels. 11 The 
reasons for the intermediate form are 
fully detailed in the appendix to 
Chapter XII, Lead, in Penn State's Sep- 
tember 1978 report, "SIC Based End-Use 
Scheme for Information Critical Minerals" 
(28). 12 

A Statistical Sampling Alternative 

An alternative to a comprehensive 
industry canvass is to use a suitable 
sampling method to estimate statistically 
valid data for industry shipments. If 
feasible, this method can reduce the cost 
of the survey and reduce the reporting 
burden on the industry. A sampling 
approach is particularly suited to those 
atomistic industries that serve largely 
regional markets. 



sampling about 10 percent of establish- 
ments in this particular industry. The 
results were mixed. On one had, the 
study proved that a stratified random 
sampling both is feasible and can provide 
valid results for SIC-based end-use data, 
even when the respondent firms are not 
well acquainted with SIC. On the other 
hand, the study also showed that even an 
intensive effort that involved two sepa- 
rate mailings and extensive telephone 
canvassing was not sufficient to persuade 
firmsin this industry to participate in 
the voluntary canvass. 

In the case of steel service cen- 
ters, it was possible to design a sam- 
pling method, but it was impossible to 
implement the scheme. The respondent 
firms often serve narrow, local markets 
and focus on present customers. They did 
not perceive sufficient benefits for 
themselves from nationally oriented, SIC- 
based data to complete the canvass. The 
voluntary sample survey of steel service 
centers produced only a 20-percent 
response, an inadequate basis for drawing 
statistically valid conclusions. 

Integrating Data From Other Sources Into 
the SIC-Based Information System 



A pilot study of steel service cen- 
ter shipments was conducted by Penn State 
to determine the feasibility of a survey 

1 1 Penn State carried out a study on an 
SIC-based end-use data scheme for 
U.S. lead in the summer of 1976. Two 
alternative survey forms were pro- 
posed in that study. The Lead Indus- 
tries Association (LIA.X, which coop- 
erated with the Penn State study, 
however, wished to have a more 
detailed product to end-use classifi- 
cation scheme. The alternative form, 
shown in Penn State's 1978 report, 
reflected LIA's concern for details 
and was more consistent with 
the standard format of end-use 
questionnaires . 

1 Underlined numbers in parentheses refer 
to items in the bibliography preced- 
ing the appendixes at the end of this 
report. 



Several trade associations, such as 
the American Iron and Steel Institute, 
Copper Development Association, and Alu- 
minum Association, collect end-use data 
periodically from their member firms. 
For the SIC-based information system pro- 
posed in this study to be cost effective, 
it was necessary to examine whether end- 
use data that are now available from such 
associations could be integrated into the 
SIC-based information system. 

Reports of end-use data published by 
trade associations tend to be issued very 
promptly and usually in such detail that 
the data completely satisfy the informa- 
tion system proposed in this study. 
Until now, the use of such data has been 
inhibited by two major considerations. 
First, each trade association follows a 
market classification of its own, appar- 
ently suited to the particular needs of 
the trade group involved. Therefore, 



32 



data from different trade associations 
for different materials are not gathered 
on a comparable basis. 

Second, until now, information from 
trade associations has been dissemenated 
only to the member firms and generally 
has not been available to the Government 
or the public. Even when trade associ- 
ation data are provided to the public, 
the data are often released after major 
aggregations or other recasting, so that 
the published information is not com- 
parable to SIC. For example, the Copper 
Development Association (CDA) published 
data on annual consumption of copper in 
five major end-use markets. But the CDA 
itself collects data from brass mills on 
shipments to 54 "end uses" and for 4 dif- 
ferent products. The CDA combines its 
primary data for brass from the 54 end 
uses with estimates of copper wire mill 
shipments, and only these aggregated data 
are provided to the public. 

However, if the data that are made 
available by trade associations can be 
integrated into an SIC-based information 
system, the public interest would be 
served. Hence, the attempt is made in 
the Bureau's new end-use reporting system 
to use trade association data whenever 
such data are available. 

To achieve the above objective, it 
is essential to "correlate" the trade 
association classification with SIC. 
Such attempts at correlation were made 
unsuccessfully in the past by the Ameri- 
can Iron and Steel Institute, Inter- 
national Nickel Company (for steel), and 
Copper Development Association (for brass 
mill shipments) . 

Table 10 illustrates the reason for 
the failure of these industry efforts to 
correlate existing market classifications 
with SIC. CDA 310, Automotive Non- 
electric, consists of the 95 items listed 



in table 10, but CDA 310 itself is but 
one of the 54 CDA end uses. CDA has 
defined the 310 "end use" to include 
products such as automotive hardware, 
piston rings, and passenger car bodies, 
as described in column 2. As shown in 
column 1 , CDA then proceeded to iden- 
tify each one of these products with the 
SIC four-digit industry or five-digit 
SIC-based product class that described 
these products. 

Column 1 of table 10 shows that CDA 
end-use category 310 cannot be identified 
with one unique SIC code. Automotive 
Hardware is produced by firms in 
SIC 3429, Piston Rings in SIC 3529, Pas- 
senger Car Bodies in SIC 3711, and so on. 
Because each of these examples belongs to 
three entirely different SIC two-digit 
major groups, the difference cannot be 
reconciled even at the two-digit major 
group level. Because of such extensive 
overlaps into different SIC groups and 
industries, CDA concluded that it is not 
possible to compare CDA end uses with 
SIC. 

Two points should be noted here. 
First, CDA was not willing to redefine 
its end use 310 (and other end uses) in a 
way that would minimize the above prob- 
lem. Instead, CDA attempted (and failed) 
to achieve a perfect one-to-one correla- 
tion between two entirely different clas- 
sification systems. Second, this failure 
is not a sufficient indication that SIC 
is a poorly defined classification sys- 
tem. All that it indicated is that SIC 
is defined in a different manner than 
that utilized in CDA's classification 
system. 

A reasonable basis for comparing 
such individualized industry classifica- 
tions as that of CDA with SIC does exist, 
however, if such comparisons are made 
with SIC commercial uses. 



33 



TABLE 10. - CDA market classification, an example using CDA 
end-use 310, Automotive, Nonelectric 



SIC No. 



Description 



3429 4 Automotive hardware. 

3429 4 Bus hardware. 

3429 4 Hardware, motor vehicle. 

3429 4 Motor vehicle hardware. 

3429 4 Truck hardware. 

3465 Automotive trim. 

3465 Grills, automotive radiator. 

3465 Hubcaps, automotive. 

3465 Trim, automotive body. 

3519 1 Bus engines, diesel. 

3519 1 Diesel engines, truck, bus, and auto. 

3519 1 Truck engines, diesel. 

3585 3 Air conditioners, auto, truck, and bus. 

3585 3 Automotive air conditioners. 

3585 3 Bus air conditioners. 

3585 3 Truck air conditioners. 

3592 Carburetors, automotive. 

3592 Floats, carburetor. 

3592 Piston rings. 

3711 1 Ambulances, assembly. 

3711 1 Assembly — cars, trucks, and buses. 

3711 1 Bodies and body parts, automotive. 

3711 1 Bodies, motor vehicle, other than truck or bus. 

3711 1 Buses, assembly. 

3711 1 Chassis, automotive, for sale separately. 

3711 1 Fire engine assembly. 

3711 1 Motor vehicle bodies, other than truck or bus. 

3711 1 Motor vehicles, assembly. 

3711 1 Passenger car assembly. 

3711 1 Passenger car bodies. 

3711 1 Taxicabs, assembly. 

3711 1 Tractors, motor truck (highway), assembly. 

3711 1 Truck tractors and trailers, assembly. 

3711 1 Trucks, motor, assembly. 

3713 Ambulance bodies. 

3713 Bodies, truck and bus. 

3713 Bus bodies. 

3713 Cabs, for industrial trucks. 

3713 Coach and bus bodies. 

3713 Truck beds. 

3713 Truck bodies. 

3713 Truck cabs. 

3713 Truck tops. 

3714 1 Accessories, automotive, nonelectrical. 

3714 1 Automobile parts and accessories, nonelectrical. 

3714 1 Bearings and bushings, automotive. 

3714 1 Brakes and brake parts, automotive. 

3714 1 Bumpers, automotive. 

3714 1 Bus engines, except diesel. 

3714 1 Bus parts and accessories. 



34 

TABLE 10. - CDA market classification, an example using CDA 
end-use 310, Automotive, Nonelectric —Continued 

SIC No. Description 

3417 1 Bushings, automotive. 

3714 1 Clutches and parts, automotive. 

3714 1 Cores, automotive radiator. 

3714 1 Cores, tire valve. 

3714 1 Disk brakes, automotive. 

3714 1 Drum brakes, automotive. 

3714 1 Engine bearings, automotive. 

3714 1 Engines and engine parts, automotive. 

3714 1 Filters, automotive. 

3714 1 Fuel systems and parts, except carburetor. 

3714 1 Gears, automotive. 

3714 1 Governors, automotive. 

3714 1 Headers, radiator, automotive. 

3714 1 Heaters, automotive. 

3714 1 Lubrication systems and parts, automotive. 

3714 1 Motor vehicle parts and accessories, nonelectrical. 

3714 1 Passenger car parts and accessories, nonelectrical. 

3714 1 Pollution control equipment, automotive. 

3714 1 Power steering and brakes, passenger car. 

3714 1 Pumps, fuel and water, automotive. 

3714 1 Radiator and parts, automotive. 

3714 1 Rebuilding, motor vehicle engines, factory. 

3714 1 Rebuilt engines and parts, automotive, except carburetors. 

3714 1 Shock absorbers, automotive. 

3714 1 Steering mechanisms, automotive. 

3714 1 Strainers, gasoline, automotive. 

3714 1 Tanks, radiator, automotive. 

3714 1 Thermostats, automotive. 

3714 1 Tire inflators, automotive. 

3714 1 Tire valves. 

.3714 1 Transmission equipment, automotive. 

3714 1 Truck engines, nondiesel. 

3714 1 Valves, automotive, tire. 

3714 1 Wheels and parts, automotive. 

3715 Chassis, truck trailers. 

3715 Horse vans. 

3715 Semitrailers for truck tractors. 

3715 Tank trucks. 

3715 Trailers, motor truck. 

3715 Truck trailers. 

3715 Vans, freight. 

7539 Automotive radiator repair shops. 

7539 Automotive repair shops, n.e.c. 

7539 Radiator repair shops. 

7539 Repair shops, automotive, n.e.c. 

Source: Copper Development Association, End-Use Classification Scheme for Copper and 

Copper Alloy Mill Products, 1977. 



35 



Consider again the previous example 
of CDA category 310, Automotive, Non- 
Electric. This category represents con- 
sumption of copper and copper alloys in 
nonelectric uses in motor vehicles. The 
appropriate end-use sector then is motor 
vehicles. Irrespective of whether a par- 
ticular product is produced by a metal 
fabricator or an automotive plant, 13 the 
material is consumed in the manufacture 
of motor vehicles. Therefore, SIC 371, 
Motor Vehicles, correlates extremely well 
with CDA 310. In other words, the quan- 
tity of copper used in CDA 310 is con- 
sumed in the production of motor vehic- 
les, whether we choose to designate the 
consumption in terms of SIC or in terms 
of DCA classification. In this explana- 
tion, then, we have a basis to compare 
CDA's classification system with the 
Bureau's SIC-based system. 

The above example was meant to show 
the basic reason for the failures of past 
industry attempts, as well as to explain 
that within the objectives of the present 
study, it is highly probable that indus- 
try data can be integrated into an SIC- 
based information system without a sig- 
nificant loss in accuracy. This logic 
assumes, for example, that a brass pro- 
ducer will report the same tonnage when 
he is asked to report shipments for con- 
sumption in motor vehicles, whether or 
not motor vehicles are described as 
CDA 310 or SIC 371. 

It should also be noted that the 
quantity shown for 310 in CDA's own data 
base tells the industry only the consump- 
tion of brass mill products for automo- 
tive use. There is no reason why these 
product listings have to be viewed dif- 
ferently when the data are analyzed in 
terms of SIC. The above example shows 
that, at least as a first approximation, 
it is possible to correlate a trade 

3 The producing industry is the basis 
used by CDA for assigning the SIC 
numbers shown in table 10, column 1. 



association's end-use categories with 
SIC-defined end uses, even when there 
does not appear to be a one-to- 
one correlation between the two 
classifications . 

Table 11 provides a means to trans- 
late the CDA 54 end-use categories into 
a minimum number of SIC categories. The 
CDA 54 end-use categories are regrouped 
in terms of 19 SIC categories using the 
following criteria: (1) Significant vol- 
ume of shipments as indicated by avail- 
able data on brass mill shipments, (2) 
the clarity of data at the SIC two-digit 
major group level, and (3) the desirabil- 
ity of a list of end uses common for both 
brass mill and wire mill shipments. 

The format of table 11 collapses to 
19 the number of SIC end uses that cor- 
respond to the 54 CDA end uses. In 
table 11, CDA data for 1972 brass mill 
shipments are used as a measure of the 
volume of shipments. Column 3 lists the 
percent of brass mill shipments demanded 
in each SIC category specified. The 
reader also should be aware that brass 
mill shipments are but one part of copper 
shipments, which are what the Bureau 
wishes to measure. 

This brass-copper relationship is 
the reason that a major exception to the 
volume cutoff point apparently is made in 
the choice of SIC end uses in electrical 
and electronic equipment. Among SIC 361, 
362, or 366, none is critical if con- 
sidered on the basis of volume of brass 
shipments. These three SIC categories 
are critical for end-use data relating to 
copper wire mill products and are, there- 
fore, retained. The percentages shown in 
table 11 are misleading because they per- 
tain only to brass mill shipments. 

Another major exception that is made 
in table 11 is the inclusion of SIC 38, 
Instruments and Related Products. This 
item is included to insure clarity of 
data at the SIC two-digit level. 



36 



TABLE 11. - Recommended translator for converting CDA data into SIC data base 



SIC 


SIC description 


Brass shipments, 
percent of total 


Corresponding CDA end uses 


code 


CDA 


CDA Description 1 








code 




15 




3 


190 
522 








Onsite heat exchangers. 


33 




6 


910 


Rerollers and redrawers. 


34 


Fabricated metal products: 








343 




6 


130 


Plumbing and heating. 


345 




10 


610 
810 


Fasteners. 

Screw machine products. 


346 


Metal forging and stamping. . 


6 


820 
830 


Forging. 
Stamping. 


348 




6 


760 


Ordnance. 


3401 


Other fabricated metal 


9 


110 


Builders' hardware (342). 




products. 




120 
521 
530 
230 
290 


Architectural products (344). 
Industrial heat exchangers (344). 
Industrial valves and fittings (349). 
Utensils and plated ware (3401). 
Other household products (3401). 




Subtotal 




890 


Other component parts (3401). 




37 






Nonelectrical machinery: 




35 






358 




6 

4 


140 
529 
590 


Cooling. 

Other heavy industrial equipment. 


3501 






Electrical and electronic 




10 


Other industrial machinery and equipment. 


36 








equipment: 








361 


Electrical transmission and 


1.5 


421 


Transformers. 




distributing equipment. 




422 


Switchgear and industrial circuit breakers. 


362 


Electrical industrial 


2 


410 


Motors and generators. 




apparatus. 




423 
429 


Industrial controls. 

Other electrical distribution and control. 


366 




1.5 


431 


Telecommunications. 


3601 


Other electrical and elec- 
tronic equipment. 


7 


210 

220 
440 
432 
490 


Major appliances except air conditioners 

(363). 
Portable appliances (363). 

Wiring devices, lamp shell, and sockets (364). 
Electronics and other communication (3601). 
Other electrical and electronic products 

(3601). 




12 






Transportation equipment: 










371 




13 


310 
320 


Automotive, except electrical. 
Automotive, electrical. 






3701 




1 


330 


Marine. 




Subtotal 




390 

710 
740 


Other transportation. 




14 
1 




38 


Instruments and related 
products . 


Timing devices (387). 






Instruments, except electrical measuring 










(3801). 




Miscellaneous manufacturing 










industries: 








396 


Jewelry, notions, buttons, 


2 


620 


Closures. 




closures. 




7 30 


Jewelry. 


3901 


Other miscellaneous manu- 
facturing industries. 


2 


790 


Other uses. 




4 






Other identified end uses: 








12 
1 


920 
930 








Export. 








100 





lumbers in parentheses indicate appropriate SIC codes for CDA end uses grouped together in this translator 
for convenience. 



37 



Table 11 retains (1) all the major 
SIC end-use sectors relevant for copper 
and copper alloys and (2) the benefits of 
an end-use classification that is common 
for both wire mill (copper) and brass 
mill products. Also, since the end-use 



categories in table 11 are aggregated, 
there is less need for concern about the 
confidentiality of the source informa- 
tion. This was a problem that precluded 
direct use of CDA's 54-end-use data base. 



IMPLEMENTATION OF THE DATA SYSTEM 



The practical aspects of the imple- 
mentation of the SIC end-use data system 
were first tested using sulfur. After an 
industrywide trial run of the survey form 
to elicit industry comments and sugges- 
tions, the scheme for sulfur was imple- 
mented in 1976. 

The initial work was followed by an 
extended study to cover all information- 
critical minerals. Studies were com- 
pleted for the following mineral 
commodities: 



Aluminum 

Antimony 

Asbestos 

Bismuth 

Cadmium 

Chromium 

Cobalt 

Columbium 

Copper 

Fluorine 

Iron and steel 

Lead 



Mercury 

Mica 

Nickel 

Rare earths 

Sulfur 

Tantalum 

Tin 

Titanium 

Tungsten 

Vanadium 

Zinc 



Together, these 23 mineral commodi- 
ties represent a total of 42 techni- 
cal product classes (ferrous minerals, 
18; nonferrous minerals, 17; and 
nonmetals, 7). 

Table 12, which is similar in con- 
cept to the traditional transaction 
matrix of an input-output table of the 
economy, lists the 42 TPC's and the SIC 
end uses relevant for each. 

In such a table, the column entries 
would represent the input of each TPC in 
the production of goods in SIC-based com- 
mercial uses , and the column totals would 
represent the total consumption of TPC's 
in the production of all domestic goods. 
Similarly, the row (line) entries would 
indicate the demand for the various TPC's 
in each SIC commercial use. 



Table 12 here consists of three 
pages; in reality it should be one sheet 
of 42 TPC columns (beginning with "car- 
bon steel" and ending with "asbestos") 
and 71 end-use rows (beginning with 
SIC 01, Agriculture and ending with 
SIC 39, Miscellaneous Manufacturing 
Industries) . 

The ratio of each actual entry in 
the table 12 matrix to the total output 
of the corresponding SIC commercial use 
yields the intensity-of-use of a TPC in 
that SIC commercial use. In the section 
"Symbolic Definition of Technical Product 
Classes" equation 4 was given. This 
equation can be used to calculate the 
intensity of use of a mineral as a func- 
tion of the intensity of use of its 
TPC's. It was also shown how properly 
specified TPC categories (the X's and Z's 
of figure 1) could be combined to yield a 
reasonable approximation of the 
intensity-of-use of a mineral (M) in SIC 
commercial uses. In other words, when 
the data system is in place for all min- 
erals, it will be possible to construct a 
second matrix similar to the one in 
table 12 with minerals as columns instead 
of TPC's, thus providing an intensity- 
of-use matrix for different minerals in 
SIC commercial uses. 

Many of the data needed to construct 
the matrix in table 12 are not now col- 
lected by the Bureau. The purpose of the 
new data system is to gather, for the 
first time, information leading to the 
construction of such a matrix. 

The end-use data for the 42 TPC's 
in table 12 can be obtained by the Bureau 
with a minimum of additional canvasses. 14 
Other than the new survey forms 
already in use for sulfur, only three 

14 See appendix B for references to speci- 
fic commodity studies. 



38 



new canvasses are needed: (1) High- 
temperature alloys, (2) magnetic alloys, 
and (3) carbides and hard-facing alloys. 
These three TPC's are common for a number 
of ferrous minerals, yet no end-use data 
are at present collected for them. 

Data for all other TPC's can 
obtained either by translating currently 
available data into the SIC end-use for- 
mat or by modifying existing Bureau 
canvasses. 

The statistics will be collected 
from the producers of the various TPC's 
on an annual basis. Annual collection 
reduces the burden on the reporting firms 
and also avoids the necessity for data on 
inventories. The annual time horizon 
implies that "shipments" are more likely 
to coincide with "consumption" than is 
the case with the monthly and quarterly 
data of many of the Bureau's current 
statistical reports. 



When fully implemented, the two- 
dimensional TPC end-use matrix shown in 
table 12 will for the first time provide 
and complete input-output matrix of mate- 
rial consumption in SIC end-use sectors. 
The table entries will help in improving 
the forecasting of the demand for mate- 
rials (TPC's), given forecasts of eco- 
nomic actibity in the specified end-use 
sectors. 

The matrix in table 12 also will 
yield data over time useful in iden- 
tifying the intensity-of-use of TPC's in 
various end uses, as well as the 
substitution between different technical 
product classes in the same end-use 
sectors. The new data system of the 
Bureau will constitute a major step in 
gaining a better understanding of the 
nature of demand for minerals in the 
economy. 



IPC end-use matrix for information-critical minerals 



(X's indicate data that will be available when implementation 
of the data system is complete) 























■a 

C bO 
a) E 


1 




>» 




















„ 


SIC 


End-use 


industries 










n 


a 
s 


" 


ai ra 


u 


ST? 


2 n 


c 




BO 




t3 


c 


1 


1 


E 


fl 


code 






B 










H » 




•O Uj 


J3 H 


■a s 


tt a 


*J 3 




























>»-H 






I >> ai >. 




N 2 






























< 4> 

-1 01 


o ot 


^H V 




£ o 


c o 




a » 


h 


2 fi- 




Jrf 4-» 


J£ o 


fl 8- 




















■-H Q> 




td n 


00 H 


now 






IM 1-. 


J3 bJ 






















8% 




as 








1-3 




S 2 


-C O 


hi J3 




















O 3 








X to 


H CO 


en uj 


a: « 


O J3 


u o 


Eg u 


U O 


u e 


z a. 


Z (D 


Z U 


H 


H 


> 


< 



01 

10 

15 

16 

20 

22 

25 

26 

27 

281 

282 

283 

284 

285 

286 

287 

289 

28 

291 

29 

30 

31 



Agriculture X 

Mining X 

Building construction X 

Heavy construction X 

Food and kindred products 

Textile mill products 

Furniture and fixtures X 

Paper and allied products 

Painting 

Industrial inorganic chemicals 

Plastics, materials, and synthetics 

Drugs 

Soap, cleaners, and toilet goods 

Paints and allied products 

Industrial organic chemicals 

Fertilizers and agricultural chemicals 

Explosives and miscellaneous chemical products 

Chemicals and allied products 

Petroleum refining 

Petroleum and coal products 

Rubber and miscellaneous plastics products.... 
Leather and leather products 



01 

10 

15 

16 

20 

22 

25 

26 

27 

281 

282 

283 

284 

285 

286 

287 

28 

291 

29 

30 

31 



X X 
X XX 
X 

X 

X 
X 

X 

X 

X X 
X X 

X X X X 

XXX 

X X X X 



Agriculture 

Mining 

Building construction X 

Heavy construction 

Food and kindred products 

Textile mill products 

Furniture and fixtures X 

Paper and allied products 

Painting 

Industrial inorganic chemicals 

Plastics, materials, and synthetics 

Drugs 

Soap, cleaners, and toilet goods 

Paints and allied products 

Industrial organic chemicals 

Fertilizers and agricultural chemicals 

Chemicals and allied products 

Petroleum refining 

Petroleum and coal products 

Rubber and miscellaneous plastics products.... 
Leather and leather products 







> 




















































































a at 




























m 














&o o> 














1 


*-3 












o 


















•O 




















3 








CO 




•H w 


a co 




C 






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•^ C 






n 


a. 












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TJ c 












td 






W 3 


























m 0) 


o 






3 




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01 O 


X 















3 










1 4) 






■a 


> 






E <0 


so e 






e 




O TJ 


i- -a 




IM T3 


to 






C 00 




E ~H 


c e 


m 




U 










•a 




3 "H 


TD >H 










u 


■H « 






— o 










2 g 


2 8 


en n 
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>> 




3 U 






m 


N CJ 


3S B 


r-q u 


N O 


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C/5 


~ 


< 




u 


Eh 


'-J- cd 


x to 




to CO 


S 





X XX 

X X 
XX X 

XXX X 

X XXX X 

X XX 

X XX 

XX X 

X 
X X 

X XXX 

XXXXXXX XX 

X 
XX X 

XX XX 



X 

X X 

X X X X X 

XXX 

X X 

X X 

X X 

XXX 

XXX 

XX XX 

X X X X X 

XXX 

XXX 

X X 



TPC end-use matrix for information-critical minerals 



(X's indicate data that will be available when implementation 
of the data system is complete) 



SIC 
code 



End-use industries 



321 

324 
325 
326 
329 

32 
331 
332 
333 
334 
335 

33 
341 
342 
343 
344 
345 
346 
347 
348 
349 

34 
351 
352 
353 



321 

324 
325 
326 
329 

32 
331 
332 
333 
334 
335 

33 
341 
342 
343 
344 
345 
346 
347 
348 
349 

34 
351 
352 
353 



Glass 

Cement 

Structural clay products 

Ceramics 

Abrasives and miscellaneous products 

Glass, ceramics, and clay products 

Steel mills X 

Iron and steel foundries 

Primary nonferrous metals 

Secondary nonferrous metals 

Nonferrous rolling and drawing 

Primary metal industries X 

Metal cans and containers X 

Cutlery , hand tools , and hardware X 

Plumbing and heating X 

Fabricated structural products X 

Screw machine products X 

Metal forgings and stampings X 

Plating, coating, and polishing 

Ordnance X 

Miscellaneous fabricated metal products 

Fabricated metal products X 

Engines and turbines X 

Farm and garden machinery X 

Construction machinery 



Glass 

Cement 

Structural clay products 

Ceramics 

Abrasives and miscellaneous products 

Glass, ceramics, and clay products 

Steel mills 

Iron and steel foundries 

Primary nonferrous metals 

Secondary nonferrous metals 

Nonferrous rolling and drawing 

Primary metal industries 

Metal cans and containers 

Cutlery, hand tools, and hardware X 

Plumbing and heating 

Fabricated structural products 

Screw machine products X 

Metal forgings and stampings X 

Plating, coating, and polishing 

Ordnance X 

Miscellaneous fabricated metal products 

Fabricated metal products X 

Engines and turbines 

Farm and garden machinery 

Const rue t ion machinery 



X 


X 


X 


X 


X 




X 


X 














X 


















I 
> 














































































































































§■3 






























■o 






















3 








CO 




■H W 


a to 




c 












•H C 




si 


n 


a. 
















t: c 




-a 


3 












ui 3 


























. <u 








3 






0J o 






■$ 






O 




3 
















T3 


> 






C « 




a) i-i 




















C CO 




C r-» 




rO 








00 *J 


U B 






T3 




3 -H 


TJ "H 
















■H O 


-H O 








5 


1 § 


£ S 


5 V 










>. U 






•H 




OQ 


M a 


X C 


N >-i 


N u 


-J 


''■ 




03 


U 


fa 


[14 (4 


X to 




UJ ffl 


z 





X X 

X 

X 



X X 

XX XX 

XX X 

X 

XX X 

X 

XXX 

X X 

X X XX 

X X X X XX 

X X 

X X 



TABLE 12. - TPC end-use matrix for information-critical minerals — Continued 



(X's indicate data that will be available when implementation 
of the data system is complete) 



SIC End-use industries 
code 


c 

O —1 

■C 01 
U 0) 

u w 


< CI 
.J 0) 


o oj 

3S 


o -u 


01 
C H 

m a) 


D. 

s 

H 08 
1 >. 

J= O 
HO -H 


c o 

b0-4 

i « 


C DO 


iH C 

o « 


ll 

•^ i 

O Q, 

i- s 

£ o 
u a 


2 1 

U O 

01 JZ 

al U 


*-» 3 

<H O 

2 §■ 

o O 


!T3 fl 
JD U 

O 0) 

U B 


60 
O rO 

z a. 


.*: o 

O r-f 

2 m 


■a 

c 
h 3 
a o 

15 §• 

■H O 

2 U 


C 
01 

c 
a 

H 


I 

c 
n 

H 


| 

-a 
c 
> 


i 

c 



3 


M 9 

at a* 
o. t-> 
a. - 
o 3 




X 


X 


X 


X 


X 


X 




X 












X 


X 




X 











355 

356 

357 

358 

35 

361 

362 

363 

364 

365 

366 

367 

369 

36 

371 

372 

373 

374 

376 

379 

37 

38 

39 



354 

355 

356 

357 

358 

35 

361 

362 

363 

364 

365 

366 

367 

369 

36 

371 

372 

373 

374 

376 

379 

37 

38 

39 



General industrial machinery X 

Office and computing machines 

Refrigeration and service machinery X 

Nonelectrical machinery X 

Electric distributing equipment 

Electrical industrial apparatus 

Household appliances X 

Lighting and wiring equipment* 

Radio and TV receiving equipment 

Communication equipment X 

Electronic components 

Batteries and miscellaneous equipment 

Electric and electronic equipment X 

Motor vehicles and equipment X 

Aircraft and parts X 

Ship building and repairing X 

Railroad equipment X 

Guided missiles, space vehicles, parts 

Miscellaneous transportation equipment 

Transportation equipment X 

Instruments and related products 

Miscellaneous manufacturing industries X 



Machine tools, dies, etc 

Special industry machinery 

General industrial machinery 

Office and computing machines 

Refrigeration and service machinery X 

Nonelectrical machinery X 

Electric distributing equipment 

Electrical industrial apparatus 

Household appliances X 

Lighting and wiring equipment 

Radio and TV receiving equipment 

Communication equipment 

Electronic components 

Batteries and miscellaneous equipment 

Electric and electronic equipment X 

Motor vehicles and equipment 

Aircraft and parts 

Ship building and repairing 

Railroad equipment 

Guided missiles, space vehicles, parts 

Miscellaneous transportation equipment 

Transportation equipment X 

Instruments and related products X 

Miscellaneous manufacturing industries X 









1 












































> 












































.-< — < 












































n) 0) 




























U 












<1> 


m 


b0 w 




•a 










1 


33 








in 


•H 


o 

3 




y 




w 






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Q. <J) 




c 






>, 






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a. 
















T1 






TJ 


3 












tfl 3 




























T3 TJ 


n at 


O 




at 


a 






CU O 


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n 






O 




3 












1 01 




u a. 


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c <u 


c a. 


at u 






O TJ 


U -o 




U-. TJ 








C 






c <-t 








u 




00 *-» 


bo B 






■a 




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T3 -H 




























< 


1 % 


£ o 


s i 




















JO 


N 


° 


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■j 


M . 




CQ 


CJ 


u, 


to. n) 


K « 




tf) OJ 


E 


< 



42 



BIBLIOGRAPHY 



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43 



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45 



APPENDIX A.— SOME OF THE FIRMS AND TRADE ASSOCIATIONS CONSULTED IN THIS STUDY 

Alcan Aluminum, Elizabeth, N.J. 

Alcoa, Pittsburgh, Pa. 

Allegheny Ludlum, Pittsburgh, Pa. 

Allied Chemicals, Morristown, N.J. 

Alpha Metals, Jersey City, N.J. 

Aluminum Association, New York, N.Y. 

Amax, Niagara Falls, N.Y. 

American Cyanamid, Wayne, N.J. 

American Electroplaters Society, Winter Park, Fla. 

American Hot Dip Galvanizers Association, Washington, D.C. 

American Iron and Steel Institute, Washington, D.C. 

Anaconda, Greenwich, Conn. 

Arconium Corp. of America, Providence, R.I. 

Asarco, New York, N.Y. 

Asarco, Tucson, Ariz. 

Asbestos Textile Institute, Willow Grove, Pa. 

Ashville-Schoomaker Mica Co., Newport News, Va. 

Babcock & Wilcox, Beaver Falls, Pa. 
Belmont Metals, New York, N.Y. 
Beloit Corp., Beloit, Wise. 
Bismuth Institute, Brussels, Belgium 

Cabot, Stellite Division, Kokomo, Ind. 

Canon-Muskegon, Muskegon, Mich. 

Carpenter Technologies, Reading, Pa. 

Cerro Metal Products, Belief onte, Pa. 

C. F. Industries, Bartow, Fla. 

Cities Service Co., Atlanta, Ga. 

Cleveland Mica, Lakewood, Ohio. 

Climax Chemical, Hobbs, N. Mex. 

Cobalt Information Center, Columbus, Ohio 

Copper Development Association, New York, N.Y. 

Crucible Steel, Midland, Pa. 

Delta Chemicals, Searsport, Maine 

Derby, Pittsburgh, Pa. 

Diamond Shamrock, Cleveland, Ohio 

Duval Corp., Houston, Tex. 

Economy Plating, Chicago, 111. 

E. I. du Pont de Nemours, Wilmington, Del. 

Englehard, Plainville, N.J. 

ESB Incorporated, Philadelphia, Pa. 

Essex, Fort Wayne, Ind. 

Essex Chemical Corp., Clifton, N.J. 

Falconbridge, Greentree, Pa. 

Fansteel Metallurgical Corp., North Chicago, 111. 

Federal Mogul, Detroit, Mich. 

Ferroalloys Association, Washington, D.C. 

Freeport Sulfur, New York, N.Y. 



46 



Gardiner Metal, New York, N.Y. 

General Electric, Carboloy Division, Detroit, Mich. 

General Electric, Magnets Division, Edmore, Mich. 

General Electric, Cleveland, Ohio 

Gould Inc., St. Paul, Minn. 

GTE Sylvania, Towanda, Pa. 

Gulf and Western Industries, Bethlehem, Pa. 

Gulf Oil Corp., Houston, Tex. 

Gulf Resources and Chemical Corp., Gastonia, N.C. 

Hall Chemicals, Cleveland, Ohio 

Hammond Lead Products, Hammond, Ind. 

Handy & Harman, New York, N.Y. 

Harshaw Chemical, Cleveland, Ohio 

Hewitt Metals, Detroit, Mich. 

Howmet Turbine Components, Pontiac, Mich. 

Huntington Alloys, Huntington, W. Va. 

Indiana General, Valparaiso, Ind. 

Indium Corp. of America, Utica, N.Y. 

Inspiration Consolidated Copper, Inspiration, Ariz. 

International Nickel, New York, N.Y. 

International Minerals and Chemical, Libertyville, 111. 

Johns Manville, Denver, Colo. 

Jones & Laughlin Steel, Pittsburgh, Pa. 

Kaiser Aluminum & Chemical, Oakland, Calif. 

Kennametal, Latrobe, Pa. 

Kennecott Copper, New York, N.Y. 

Kerr McGee Chemical Corp., Oklahoma City, Okla. 

Kester Solder, Chicago, 111. 

Kraft Chemicals, Chicago, 111. 

Lead Industries Association, New York, N.Y. 
Li Tungsten Corp., Glen Cove, N.Y. 

Magma Copper, San Manuel, Ariz. 

Magnetics Specialty Metals, Butler, Pa. 

Metal Finishing Suppliers Association, Birmingham, Mich. 

Midwest Mica & Insulation, Cleveland, Ohio 

Minnesota Mining and Manufacturing, St. Paul, Minn. 

Mobil Oil, Depue, 111. 

Monsanto, St. Louis, Mo. 

National Association of Metal Finishers, Montclair, N.J. 

National Steel, Weirton, W. Va. 

National Zinc, Bartlesville, Okla. 

New Jersey Zinc, Gloucester, N.J. 

Nicolet, Ambler, Pa. 

N. L. Industries, New York, N.Y. 

N. L. Industries, Hightstown, N.J. 

Nonotuck. Manufacturing, Shadly Falls, Mass. 



47 



Occidental Petroleum, Niagara Falls, N.Y. 
Olin Corporation, Stamford, Conn. 
Ozark-Mahoning, Tulsa, Okla. 

Pennwalt Corp., Philadelphia, Pa. 
Phelps-Dodge, New York, N.Y. 
Pfizer, Easton, Pa. 

Raybestos-Manhattan, Turnbull, Conn. 
Reactive Metals Inc., Niles, Ohio 
Read & Barton, Taunton, Mass. 
Refractory Association, Pittsburgh, Pa. 
Remington Arms, Bridgeport, Conn. 
Republic Metals, New York, N.Y. 
Reynolds Aluminum, Richmond, Va. 
Reynolds Chemicals, Richmond, Va. 
Rohm and Haas, Philadelphia, Pa. 
RSR Corp., Dallas, Tex. 

Silver Institute, Washington, D.C. 

Southwire, Carrolton, Ga. 

St. Joe Minerals, New York, N.Y. 

Standard Oil of California, El Segundo, Calif. 

Standard Oil of Indiana, Texas City, Tex. 

Stauffer Chemicals, Westport, Conn. 

Steel Service Center Institute, Cleveland, Ohio 

Sunshine Mining, Kellogg, Idaho 

Talco, Philadelphia, Pa. 

Tantalum Producers Association, Cleveland, Ohio 

Texaco, Houston, Tex. 

Texas Gulf, New York, N.Y. 

Thomas & Skinner, Pittsburgh, Pa. 

Tin Research Institute, Columbus, Ohio 

Titanium Metal Corp. of American, Pittsburgh, Pa, 

Udylite Corp., Warren, Mich. 

United Refining & Smelting, Franklin Park, 111. 

Union Carbide, New York, N.Y. 

United Technology, Essex Group, Newmarket, N.H. 

U.S. Industrial Chemicals, New York, N.Y. 

U.S. Steel, Pittsburgh, Pa. 

USS Agri-Chemicals, Bartow, Fla. 

Western Electric, New York, N.Y. 

Williams Companies, Tulsa, Okla. 

W. R. Grace, Memphis, Tenn. 

Wright Chemical Corporation, Riegelwood, N.C. 

Zinc Institute, New York, N.Y. 



48 



APPENDIX B. —REFERENCES TO COMMODITY STUDIES 



Commodity 



Alumina 

Aluminum metal. 
Antimony , 



Asbestos, 
Bismuth. , 
Cadmium. , 



Chromium: 2 
Compounds 
Refractories, 



Cobalt: 2 Compounds.. 

Columbium-Tantalum. . . 

Copper: 

Brass 



Wire mill products, 

Fluorine: 

Fluorspar 



Fluosilicic acid. 
Hydrofluoric acid. , 
High- temperature 

alloys. 
Carbides and hard- 
facing alloys. 
Magnetic alloys..., 
Lead , 



Magnesium: 
Compounds , 
Metal. 

Mercury. 

Mica , 



Source agency 

for data and Penn 

State reference 1 

U.S. Bureau of 

Mines (28). 
Aluminum 

Association (38) , 

U.S. Bureau of 

Mines (28) . 

Do. 

Do. 

Do. 



Do. 
Do. 

Do. 

Do. 



Copper Development 
Association (28) . 

U.S. Department of 
Commerce (28) . 

U.S. Bureau of 

Mines (38). 

Do. 

Do. 

U.S. Bureau of 

Mines (28). 

Do. 

Do. 
Do. 



Do. 
Do. 
Do. 
Do. 



Commodity 



Nickel: 2 

Special nickel 

alloys. 
Nickel 

electroplating. 
Nickel compounds, 

Rare earths , 

Silver , 



Steels: 
Carbon. 



Alloy , 

High strength, 
low-alloy. 

Tool 

Stainless 

Service centers, 

Sulfur: 

Elemental , 



Sulfuric acid. 
Tin , 



Titanium: 

Pigments , 

Metal and alloys, 

Tungsten , 

Vanadium , 



Zinc: 

Die castings, 



Hot-dip galvanized 
steel. 

Zinc compounds 

Rolled zinc 



Source agency 

for data and Penn 

State reference 1 



U.S. Bureau of 
Mines (28). 
Do. 

Do. 
Do. 
Do. 



American Iron and 
Steel Institute 
(38). 
Do. 
Do. 

Do. 
Do. 
None (28). 



U.S. Bureau of 

Mines (38) . 

Do. 

U.S. Bureau of 
Mines (28). 

Do. 
Do. 
Do. 
Do. 



Zinc Institute 
(38). 
Do. 

Do. 
Do. 



iln parentheses; for full citation, see ent 

appendixes. 
2 See also high-temperature alloys, carbides 

and steels. 



ry in bibliography preceding the 
and hardfacing alloys, magnetic alloys, 



•W.S. GOVIRmENT PRINTING OFFICE i 1982 0-371-787/6208 



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